Quiver Quantitative - Odey Asset Management, the brainchild of Crispin Odey, is in the process of winding down in the wake of grave allegations of sexual misconduct against its founder. Detailed by the Financial Times, the accusations surrounding Odey's behavior precipitated a whirlwind of negative consequences for the firm, with several banks severing ties and a stream of investors making a hasty exit. As a result, the firm had to close two of its funds and suspend numerous others. While Odey has vociferously disputed the claims, the fallout has been significant.
Subsequent to the surfacing of these allegations, Odey was dismissed from the very company he had founded back in 1991. The hedge funds he was in charge of have now been relocated to Bainbridge Partners, where they will be overseen by Freddie Neave, Odey's erstwhile co-manager. The unfolding scandal also triggered months of negotiations among the fund managers at Odey Asset Management, with many seeking alternative asset managers to accommodate their funds. Oliver Kelton has transitioned to SW Mitchell Capital, and notably, the Brook Global Emerging Markets Fund, led by Sophia Whitbread (LON:WTB), was closed.
With the ongoing dissolution of his company, the focus now shifts to Crispin Odey's future plans. In a recent discussion with a private investigator, Odey lamented what he termed a "massive witch hunt" against him, expressing his belief that he had been unjustly pursued by "the woke brigade." Despite the adversities, Odey remains resolute in his intent to vindicate himself. Although he did not ultimately collaborate with Seth Freedman of Red Mist, a London-based intelligence firm, Odey's dialogue with him indicated a firm belief in his ability to bounce back.
Two individuals have already initiated legal action against Odey and his firm this year over the sexual abuse allegations, although specific details have yet to be disclosed. Additionally, the report delineates the fate of several fund managers and their assets as they transition to different firms in light of Odey Asset Management's dissolution.
This article was originally published on Quiver Quantitative