Odey Asset Management (OAM) has begun the process of replacing its founder’s activities in the business after he was accused by a newspaper of historic sexual misconduct.
The hedge fund announced on Saturday that Crispin Odey had been removed from the partnership – 48 hours after the Financial Times and Tortoise Media published allegations by 13 women that he had sexually assaulted or harassed them over a 25-year period.
He has strenuously denied the claims.
The partnership was separated from the wider group, which remains majority-owned by Mr Odey.
A statement, signed by chief executive Peter Martin and chief financial officer Michael Ede, said the firm investigated the allegations concerning Mr Odey but “cannot comment in detail as it is bound by legal obligations of confidentiality”.
It said: “We, the executive committee of Odey Asset Management LLP, are announcing that Mr Crispin Odey is leaving the partnership.
Crispin Odey has denied the FT’s claims. Pic: Shutterstock
“As from today, he will no longer have any economic or personal involvement in the partnership.”
A letter to investors, seen by Sky News, showed that the partnership had made several internal appointments to maintain fund management.
They included co-manager Freddie Neave taking on full responsibility of the Odey European Inc and OEI Mac funds.
The document also said there had been “constructive dialogue” over the weekend with its prime brokers.
JPMorgan and Morgan Stanley had been understood to be reviewing their relationships with OAM in the wake of the FT report.
“Acting in the best interest of our investors and our staff has been our primary concern over the past few days”, the letter said.
Separately, Mike Ashley-majority owned Frasers Group and AO World confirmed on Monday a story by Sky News that OAM had sold a stake in AO to the sports fashion brand worth £75m – leading to the establishment of a partnership.
It had been suggested that the sale, by OAM fund manager James Hanbury, may have been part of efforts to fund client redemptions.
A spokesman for OAM had declined to comment on the issue when approached on Saturday.
Frasers CEO Michael Murray said of its new 19% stake in AO: “Frasers will benefit from AO’s valuable know-how in electricals and two-man delivery, helping us to drive growth in our bulk equipment and homeware ranges.
John Roberts, the founder and CEO of AO, said the partnership had “significant potential”.
For all the latest business News Click Here
