Odey hedge fund ‘in advanced discussions’ to sell funds to other asset managers
Scandal-hit Odey Asset Management told investors that it is to transfer some of its activities and staff to other asset managers.
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Your support makes all the difference.Odey Asset Management (OAM) is in discussions to sell off some of its funds in a sign of a deepening crisis at the hedge fund.
The business told investors that it could transfer some of its activities and staff to other asset managers.
It said in a letter that it is “in advanced discussions”.
It is a further sign of trouble at the under-pressure company, which was thrown into the spotlight when the Financial Times published a series of allegations of sexual harassment or misconduct against its founder, Crispin Odey, which he denies.
It has ... become clear that some investment management activities of the partnership are affected by recent events
OAM has since broken some of its ties with Mr Odey, saying on Saturday that he will “no longer have any economic or personal involvement in the partnership”.
But the crisis has reportedly led to customers trying to remove their money from the funds that Odey manages, and companies that provide vital services to OAM have moved to sever ties.
OAM had already moved to halt withdrawals from two of its funds and closed another amid the investor exodus.
In a letter sent to investors on Wednesday, OAM said: “We have been, and remain, in constructive dialogue with our service providers and key counterparties.
“It has, however, become clear that some investment management activities of the partnership are affected by recent events.
“Given that, the firm is now in advanced discussions for rehousing funds and transferring certain fund management activities and individuals to other asset managers.
“Any sale or rehousing is considered subject, of course, to any relevant regulatory approvals and due diligence, with a view to an orderly transition of any assets and investors.
“The fund boards and managers are also appraised and supportive of this approach.”
Acting in the best interest of our investors and our staff has continued to be our primary concern over the past few days
The business added: “Acting in the best interest of our investors and our staff has continued to be our primary concern over the past few days.”
Mr Odey has denied the allegations published in the FT last week, telling the paper they are “rubbish”.
The newspaper – together with Tortoise Media – said last week that it had spoken to 13 women who claimed they were abused or harassed by the 64-year-old fund manager.
The alleged incidents happened between 1998 and 2021 and involved women who had either worked for Odey Asset Management or had professional dealings with Mr Odey.
It was not the first time that people had made claims about Mr Odey’s behaviour.
In 2021 he was found not guilty in a court case in which he was accused of an indecent assault which allegedly happened in 1998.