Odey hedge fund to be broken up as company struggles to contain fallout from sex scandal

The hedge fund set up by Crispin Odey is being disbanded as it reels from the sexual misconduct allegations against its founder.

In a letter to clients yesterday, Odey Asset Management said it was in ‘advanced discussions’ to break itself up, and transfer funds and staff to rivals.

The move looks set to mark the end of the road for one of Britain’s best-known investment houses, which was founded by Odey in 1991.

The Mayfair-based firm was plunged into crisis last week when the Financial Times reported the stories of 13 women who alleged they were abused or harassed by the 64-year-old boss.

Odey denied the allegations, saying they were ‘rubbish’. But he was forced out last weekend as the company struggled to contain the fallout.

Ousted: Odey Asset Management founder Crispin Odey (pictured) has been accused of sexual and abuse and harassment by 13 women

With banks providing key services to the group severing ties and investors rushing to withdraw their cash, bosses indicated that the end was nigh.

In a letter to clients, Odey Asset Management wrote: ‘The firm is now in advanced discussions for rehousing funds and transferring certain fund management activities and individuals to other asset managers.

‘Any sale or rehousing is considered subject of course to any relevant regulatory approvals and due diligence, with a view to an orderly transition of any assets and investors.’

According to the company’s Linkedin page, Odey Asset Management has just under 60 employees.

The break-up is expected to be scrutinised by the Financial Conduct Authority (FCA), and any foreign regulators who may have interest in overseas funds.

The business has £3.5billion in assets under management, of which £1billion is held in funds previously run by Odey.

Partners at the fund have already broken their ties with Odey, stating on Saturday that he will ‘no longer have any economic or personal involvement in the partnership’.

The move came after a series of Wall Street banks, including Morgan Stanley, JP Morgan and Goldman Sachs, said that they were either reviewing their relationship with the firm, or cutting their ties.

It is understood that Odey has £600million of his own money across five funds, which have now been taken over by other investment managers and will be part of this move to other funds. 

The firm has been scrambling to shore up the business through asset sales, revealing a £75million deal to sell its holding in AO World to Mike Ashley-founded Frasers Group.

In an interview with The Mail on Sunday this month, Odey said he was the victim of an ‘aggressive campaign’.

When asked about the harassment and assault claims, he admitted to massaging a colleague’s back but said this was ‘not a criminal offence’.

He compared himself to ousted Tesco chairman John Allan, who was forced to resign after four women made allegations about his personal conduct.

In 2021 Odey was found not guilty in a court case in which he was accused of an indecent assault, which allegedly happened in 1998.

MPs are set to quiz the FCA over how it has handled allegations of sexual misconduct against Odey and what action it has taken.

Odey, a staunch supporter of Brexit, founded the firm in 1991.

He made his name betting against banking shares during the 2008 financial crisis.