British hedge fund Odey evicts its founder

2023-06-11 12:31:34

Finance manager Crispin Odey

The founder of the hedge fund Odey Asset Management is said to have sexually molested a total of 13 women over the past few decades.

(Photo: Reuters)

London The British hedge fund Odey Asset Management (OAM) wants to separate from its controversial founder Crispin Odey in order to stop a flight of customers and investors. “As of today, he (Crispin Odey) will have no economic or personal interest in the partnership,” wrote OAM managers Michael Ede and Peter Martin in a statement on Saturday.

The hedge fund parent company, majority owned by the founder, will be removed from the partnership and it will now be owned and controlled by the remaining partners and will continue as an independent legal entity. Odey himself indicated that he wanted to defend himself against being kicked out.

Previously, several customers and banks had turned away from the hedge fund, after the business newspaper “Financial Times” reported that Odey had sexually molested 13 women in the past decades. Odey denies the allegations and speaks of “consensual” relationships.

Large US banks such as Morgan Stanley, JP Morgan and Goldman Sachs, which handle the financial transactions for OAM as prime brokers, nevertheless distanced themselves from the hedge fund. The wealth manager Schroders withdrew its investments and the Canadian insurance group Canada Life ended its business relations with the British.

OAM manager Martin had previously assured customers that the company would investigate the allegations and that customers’ interests would be protected. According to the “Financial Times”, the British financial regulator Financial Conduct Authority (FCA) is also investigating the allegations.

Crispin Odey: Flashy lifestyle, eccentric behavior

Crispin Odey, who founded the hedge fund in 1991, is considered a colorful personality in the British financial scene and is one of the largest campaign donors for the ruling Conservatives and a vehement supporter of Brexit. Due to his flamboyant lifestyle and often eccentric demeanor, the British tabloids frequently reported on the finance executive.

Allegations of sexual misconduct have been circulating in the City of London for years. Two years ago, Odey was acquitted in one case by a court. According to information from the financial information service Bloomberg, the company’s assets under management have fallen from $13 billion to just $3 billion in recent years.

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