LONDON, June 12 (Reuters) – Odey Asset Administration shouldn’t be contemplating imposing exit restrictions on traders in any of its funds, a spokesperson stated, as companions search to sever ties with founder Crispin Odey following allegations of sexual misconduct in opposition to him.
The Monetary Occasions reported on Sunday that Odey Asset Administration had been discussing imposing restrictions or gating some EU retail funds as a part of emergency measures to handle an investor exodus, citing individuals with information of the talks.
However a spokesperson for Odey Asset Administration (OAM) instructed Reuters on Monday: “All funds are open right now as per regular enterprise, and we’re not contemplating gating any funds.”
The spokesperson stated the hedge fund partnership was contemplating the closure of its 101 million pound ($127.03 million) Swan UCITs fund.
Crispin Odey has denied the allegations of misconduct, which have been collectively reported by the Monetary Occasions and Tortoise on Thursday.
Odey Asset Administration stated on Saturday that the financier can be leaving the agency, which had $4.8 billion in belongings below administration as of September 2022.
On Sunday, a letter to traders signed by the agency’s companions and seen by Reuters set out a succession plan, together with naming alternative managers for key funds, because the agency sought to finish “private and financial involvement” with him.
OAM additionally plans to alter the identify of the agency, a supply acquainted with the matter instructed Reuters.
Sunday’s letter to traders stated Freddie Neave would take duty for the Odey European Inc (OEI) and OEI Mac funds, with James Hanbury assuming management of the LP Odey Opus Fund and Oliver Kelton taking cost of the Odey Pan European Fund.
The Odey Swan Fund might be taken on by Neave on an interim foundation earlier than a remaining fund supervisor is determined upon by the board, the letter stated.
The letter additionally stated that OAM had held “constructive dialogue” over the weekend with its prime brokers.
Since Thursday three Wall Road companies which are OAM’s so-called prime brokers – Goldman Sachs, JPMorgan and Morgan Stanley – had moved to overview or have been slicing ties with the enterprise.
A few of its shoppers stated they have been terminating enterprise with OAM due to the allegations in opposition to its founder.
Crispin Odey, who was cleared of indecent assault prices by a British courtroom in 2021, instructed Reuters on Thursday that the Monetary Occasions report was “a rehash of an outdated article and not one of the allegations have been stood up in a courtroom or an investigation”.
As prime brokers, the banks assist facilitate its trades and supply leverage for bets, making their assist important.
JPMorgan and Goldman are persevering with to overview their prime-broking relationships with the corporate, sources instructed Reuters on Saturday. Morgan Stanley declined to remark. UBS which additionally acts as a primary dealer to the agency, didn’t instantly reply.
Reporting by Nell Mackenzie;
Modifying by Sinead Cruise and Catherine Evans
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