…By Henry George for TDPel Media.
Odey Asset Management (OAM) is currently facing a significant crisis within its hedge fund operations.
The company is engaged in discussions to sell off some of its funds, while also considering the transfer of certain activities and staff to other asset managers.
These developments underscore the escalating troubles experienced by OAM, which came under scrutiny after the Financial Times published a series of allegations against its founder, Crispin Odey, related to sexual harassment or misconduct.
Odey has denied these allegations, but the repercussions have led to further challenges for the company.
Customers Seek to Withdraw Funds:
As a consequence of the crisis, customers have attempted to withdraw their investments from Odey-managed funds.
This investor exodus has compelled OAM to halt withdrawals from two funds and close another.
Additionally, crucial service providers to OAM have sought to sever ties with the company, exacerbating the challenges it faces.
Actions Taken by OAM:
OAM has taken steps to distance itself from Crispin Odey, announcing that he will no longer have any economic or personal involvement in the partnership.
In a letter addressed to investors, OAM acknowledged that recent events have impacted certain investment management activities within the partnership.
Consequently, the company is engaged in advanced discussions with the aim of rehousing funds and transferring specific fund management activities and personnel to other asset managers.
Any potential sale or rehousing is contingent upon regulatory approvals and due diligence, ensuring an orderly transition for assets and investors.
The fund boards and managers have expressed their support for this approach.
Priority: Investors and Staff:
Throughout this tumultuous period, OAM emphasizes its commitment to act in the best interests of its investors and staff.
Their welfare remains the company’s primary concern.
Allegations Against Crispin Odey:
Crispin Odey has vehemently denied the allegations published by the Financial Times, referring to them as baseless.
The newspaper, in collaboration with Tortoise Media, reported testimonies from 13 women who claimed to have been subjected to abuse or harassment by Odey between 1998 and 2021.
These incidents involved women who either worked for Odey Asset Management or had professional dealings with Mr. Odey.
It is worth noting that prior claims regarding Mr. Odey’s behavior have been made in the past.
In 2021, he was found not guilty in a court case where he faced accusations of indecent assault dating back to 1998.