June 10 (Reuters) – Crispin Odey, certainly one of Britain’s best-known hedge fund managers, is leaving Odey Asset Administration following allegations of sexual misconduct, the agency’s govt committee stated on Saturday.
The Monetary Occasions and Tortoise, in a joint publication on Thursday, reported allegations by 13 girls that Odey had sexually assaulted or harassed them over a 25-year interval. He denies the allegations.
Listed here are some key info about Odey, his London-based hedge fund, the allegations, and the fallout:
WHO IS CRISPIN ODEY AND ODEY ASSET MANAGEMENT?
Odey, 64, based his asset administration agency in 1991. He’s a number one backer of Brexit and a donor to Britain’s ruling Conservative Get together.
Odey Asset Administration (OAM) is understood for extremely leveraged bets buying and selling world equities, debt, currencies and commodities. Moreover Odey Asset Administration, the group additionally runs Brook Asset Administration and Odey Wealth, a personal wealth unit.
Former UK Chancellor Kwasi Kwarteng had been an adviser to OAM.
WHAT’S ODEY BEST KNOWN FOR?
Odey got here to prominence through the 2008 monetary disaster when he made a fortune short-selling banking shares, an funding observe that includes betting on a decline within the value of a inventory.
HOW BIG IS ODEY ASSET MANAGEMENT?
The agency had $4.8 billion in belongings below administration, in keeping with paperwork filed with the Securities and Trade Fee in September 2022.
HOW HAS ODEY’S FIRM PERFORMED?
OAM is understood for its unstable efficiency. Its flagship fund, the Odey European fund, is down roughly 8% this 12 months via Friday, after it returned round 151% in 2022, its greatest 12 months ever, because it shorted UK authorities bonds.
WHAT ARE THE ALLEGATIONS AGAINST ODEY?
Referring to the joint publication by the Monetary Occasions and Tortoise, Odey instructed Reuters by phone on Thursday that it was “a rehash of an previous article and not one of the allegations have been stood up in a courtroom or an investigation.”
Odey didn’t instantly reply to Reuters’ requests for touch upon Saturday.
Individually, British regulator the Monetary Conduct Authority (FCA) has been investigating the corporate since 2021, a supply acquainted with the state of affairs instructed Reuters.
The fund supervisor was cleared of indecent assault fees by a British court docket in 2021.
HOW HAS OAM RESPONDED?
The agency’s govt committee stated on Saturday that Odey might be leaving the asset supervisor.
OAM plans to vary the title of the agency, a supply acquainted with the matter instructed Reuters.
OAM “doesn’t acknowledge the image of the agency that has been painted” by allegations of sexual misconduct by Odey printed by media, it instructed traders in a letter dated June 8 and seen by Reuters.
COULD OAM SURVIVE WITHOUT ODEY?
Bigger hedge funds reminiscent of Odey Asset Administration Group are made up of many funds with completely different buying and selling methods.
An Odey Asset Administration with out its former figurehead would possibly retain a majority of the agency’s belongings below administration, in keeping with two sources acquainted with the matter.
Brook Asset Administration and Odey Wealth, each a part of the Odey Group, are run by completely different portfolio managers reminiscent of James Hanbury and Peter Martin, the chief govt of Odey Asset Administration.
The Odey European Inc fund was solely overseen by Odey and a majority of the 151 million euros ($162.28 million) it had below administration was his personal invested cash, stated two individuals acquainted with the matter.
WHAT ARE THE CHALLENGES OAM FACES?
Odey Asset Administration’s prime brokers, together with Goldman Sachs (GS.N), JPMorgan (JPM.N) and Morgan Stanley (MS.N), are reviewing their ties with the agency.
Goldman Sachs and JPMorgan proceed to overview their prime brokerships with OAM, sources acquainted with matter instructed Reuters on Saturday.
Morgan Stanley declined to touch upon Saturday. UBS, which additionally acts as a major dealer to OAM, didn’t instantly reply.
Prime brokers are very important for a hedge fund operation as they supply buying and selling providers, leverage for bets and securities custody.
Schroders Plc and Canada Life on Friday moved to chop again their dealings with the asset administration companies with hyperlinks to Odey.
($1 = 0.9305 euros)
Reporting by Carolina Mandl in New York and Nell Mackenzie in London; Enhancing by Dhara Ranasinghe and Daniel Wallis
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