Odey Asset Management announced sweeping changes to the way it runs the firm over the weekend, removing founder Crispin Odey from the partnership and naming new managers to take control of his funds in a bid to contain the crisis at the London-based investment firm.
Odey’s main hedge fund will be run by his co-manager Freddie Neave following a decision by the firm to remove its founder who’s facing fresh assault and harassment allegations, which Odey denies.
Odey, 64, didn’t respond to calls and messages seeking comment.
Neave will manage the flagship Odey European Inc. hedge fund and the OEI MAC fund, while James Hanbury will run the Odey Opus fund. Oliver Kelton has been given responsibility for the Odey Pan European Fund, according to a letter to investors seen by Bloomberg on Sunday.
Odey Asset Management on Monday said it’s not considering stopping investors from taking out their money from any of its funds. That statement came after the Financial Times reported the firm was discussing restrictions on investor withdrawals from its EU funds as part of emergency measures to contain the fallout.
“All funds are open today as per usual business, and we are not considering gating any funds,” according to an emailed statement. “The only fund we are considering closing is Odey Swan,” the UCITS fund formerly run by founder Crispin Odey.
The Odey Swan Fund will be managed by Neave while the firm considers its options for it, according to the letter.
Founder’s Removal
The fallout from an FT investigation on Thursday into Crispin Odey’s treatment of women over a 25-year period has been swift. Within hours of the report, the firm was trying to reassure clients and business partners after some investors pulled money and major investment banks started distancing themselves. On Saturday, the firm removed Odey from the partnership.
By also removing Odey Asset Management Group Ltd. from the partnership, the firm removed all of Odey’s economic and personal involvement, according to a letter from Odey Asset Management. This means that the partnership is now entirely unconnected to the Odey Group, which continues to be majority owned by Odey, the letter said.
“We have been in regular communication with the FCA throughout this process,” the firm said in the letter. “We have also been in constructive dialogue over the weekend with our key counterparties, including the prime brokers.”
Prior to Odey’s ouster, Morgan Stanley had begun the process of terminating its prime-brokerage relationship with Odey, people familiar with the matter told Bloomberg. JPMorgan Chase & Co. and Goldman Sachs Group Inc. were also reviewing their relationships in light of the claims, the people said, asking not to be identified because the details are private.
The allegations are the latest in a series the asset manager has faced in recent years. In 2021, he was acquitted of assault charges in British courts, but new accusations against him surfaced soon after, with two women coming forward to Bloomberg News and another to the Times of London newspaper. Later, more appeared in a Tortoise Media podcast.
