Odey Asset Management halts trading in fourth fund
Odey Asset Administration has suspended buying and selling in a fourth fund following a “sizeable degree” of withdrawal requests within the wake of sexual misconduct allegations in opposition to founder Crispin Odey, which have precipitated the break-up of certainly one of London’s oldest hedge fund companies.
The agency stated in a letter to traders on Friday that it was quickly suspending buying and selling in its $80mn Particular Conditions fund to promote belongings in an “orderly style” to fulfill the redemptions.
In the meantime, Crispin Odey resigned on Thursday as a director of ICP Holdings, a bunch of corporations working within the Lloyd’s of London insurance coverage market.
The strikes cap a tumultuous week for each the agency and its founder because the Monetary Instances revealed final Thursday an investigation into allegations of sexual assault or harassment from 13 ladies in opposition to Crispin Odey. He strenuously denies the allegations.
The agency stated on Thursday it was in “superior discussions” about transferring sure funds and workers to rival corporations.
Odey Asset Administration earlier this week halted buying and selling in three different funds — Brook Developed Markets, LF Odey Portfolio and Brook Absolute Return — and closed the Odey Swan fund, due to the upper than ordinary quantity of withdrawal requests.
The Swan fund, which was managed by Crispin Odey and homes €117mn of belongings, is being liquidated so that cash will be returned to shareholders. The measure to halt withdrawals from the opposite funds is likely one of the emergency actions taken by the agency to mitigate the consequences of traders and establishments slicing ties with Odey Asset Administration.
This week, the FT reported that JPMorgan was terminating its relationship with the asset supervisor, serving discover on its prime broking and custody relations. Prime brokers present hedge funds with inventory lending, lending and different providers, whereas custodians safeguard prospects’ cash. It’s a regulatory requirement for hedge funds to have a custodian in place.
UBS additionally moved to chop ties with Odey Asset Administration as a primary dealer, following Morgan Stanley, Exane, JPMorgan and Goldman Sachs.
Odey Asset Administration, which oversees about $4.4bn, is now in talks with rivals about offloading funds and managers in a transfer that would spell the tip of the agency that Crispin Odey based in 1991.
The agency stated on Thursday that “any sale or rehousing is taken into account topic in fact to any related regulatory approvals and due diligence, with a view to an orderly transition of any belongings and traders”. Nevertheless, it didn’t identify the businesses engaged within the discussions.
The agency’s largest funds embrace Brook European Focus Fund, run by Oliver Kelton, and LF Brook Absolute Return Fund, run by James Hanbury. Odey Asset Administration created the Brook model in 2020 and rebadged a number of funds with the moniker.
Crispin Odey’s departure from ICP Holdings is detailed in filings first reported by Bloomberg.
The group features a company member, or insurer, at Lloyd’s, that had £104mn of underwriting capability final 12 months, in accordance with firm accounts.
Lloyd’s declined to touch upon whether or not Crispin Odey is a participant out there, however stated “all members and individuals at Lloyd’s are anticipated to fulfill the requirements we set and motion could also be taken the place these requirements usually are not met”.
Odey Asset Administration additionally has an 8 per cent holding in Purpose-listed Helios Underwriting, which owns a portfolio of insurance coverage entities inside Lloyd’s. Helios declined to remark.