Crispin Odey, a prominent figure in London’s financial community for the past three decades, is now facing the potential collapse of his hedge fund following allegations of sexual assault and harassment. Odey Asset Management has announced that it is in talks to transfer funds and staff to other firms due to the impact of recent events.
In a sign of deteriorating investor confidence, the firm has closed one of its funds and implemented restrictions on withdrawals from others. This move, known as “gating,” is seen as a drastic measure to prevent a run on the bank within the hedge fund industry.
The exact amount of money remaining at Odey Asset Management, which previously managed $4.9 billion, is uncertain.
These recent events were triggered by a lengthy investigation in The Financial Times, in which 13 women accused Mr. Odey of assault and abuse at various locations, including the firm’s offices and his personal residences. A common theme in the allegations was the widespread knowledge of Mr. Odey’s behavior within the company.
Odey Asset Management has responded to these allegations by stating that it takes them extremely seriously and has robust policies in place to comply with legal and financial regulations.
Within days of the article’s publication, Mr. Odey was removed from the partnership, leading to the termination of important relationships with financial counterparties such as Goldman Sachs, JPMorgan Chase, and Morgan Stanley.
Harriett Baldwin, Chair of the House of Commons’ Treasury Committee, has called on the Financial Conduct Authority to address questions regarding its oversight of Odey Asset Management and its handling of sexual misconduct allegations within the industry.
The potential dissolution of Odey represents a significant setback for its founder, who has been known for his swashbuckling image and contrarian investment strategies that have yielded substantial profits. Despite occasional losses, such as the fund’s nearly 50 percent decline in 2016, Mr. Odey has gained a reputation as a financial celebrity and a generous donor to the governing Conservative Party.
Born into a family of industrialists and educated at prestigious institutions like Harrow School and Oxford University, Mr. Odey turned to banking to recover his family’s lost wealth. He founded Odey Asset Management in 1991 as a platform for his intuitive trading style.
While Mr. Odey has faced previous allegations and legal proceedings, including a recent trial for indecent assault, the firm seemed to be on track for a recovery. In 2022, its flagship fund achieved a 152 percent return, largely driven by profitable bets against British government bonds.
It remains to be seen how this unfolding situation will impact Mr. Odey’s reputation and the future of Odey Asset Management.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
