Odey hedge fund ‘in advanced discussions’ to promote funds to different asset managers
O
dey Asset Management (OAM) is in discussions to unload a few of its funds in an indication of a deepening disaster on the hedge fund.
The enterprise instructed traders that it’s to switch a few of its actions and employees to different asset managers.
The hedge fund is “in advanced discussions”, it mentioned in a letter.
It is an extra signal of bother on the under-pressure hedge fund, which was thrown into the highlight when the Financial Times printed a sequence of allegations of sexual harassment or misconduct in opposition to its founder, Crispin Odey.
It has nonetheless turn into clear that some funding administration actions of the partnership are affected by current occasions.
OAM has since damaged a few of its ties with Mr Odey, saying on Saturday that he would “no longer have any economic or personal involvement in the partnership”.
But the disaster has reportedly led to clients attempting to take away their cash from the funds that Odey manages, and corporations that present very important providers to OAM have moved to sever ties.
OAM had already moved to halt withdrawals from two of its funds and closed one other amid the investor exodus.
In a letter despatched to traders on Wednesday, OAM mentioned: “We have been, and remain, in constructive dialogue with our service providers and key counterparties.
“It has however become clear that some investment management activities of the partnership are affected by recent events.
“Given that, 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.
“The fund boards and managers are also appraised and supportive of this approach.”
The enterprise added: “Acting in the best interest of our investors and our staff has continued to be our primary concern over the past few days.”
Allegations have been made in opposition to Mr Odey prior to now. In 2021 he was discovered not responsible in a court docket case the place he was accused of an indecent assault which had allegedly occurred in 1998.