Scandal-hit Odey Asset Management to be broken up

Odey Asset Management is to be dismantled, after the hedge fund was sent reeling by accusations of sexual misconduct against founder Crispin Odey.

In a letter to investors on Thursday, the firm said it was in advanced discussions about "rehousing funds and transferring certain fund management activities and individuals to other asset managers".

It continued: "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."

Thanking investors for their "feedback and continued support", Odey Asset Management concluded: "Acting in the best interest of our investors and staff has continued to be our primary concern over the past few days."

The Mayfair-based partnership was thrown into crisis after a Financial Times investigation earlier this month detailed allegations of sexual assault or harassment from 13 women against Odey, 64, over a 25-year period.

In response, investors moved to withdraw funds, forcing the firm to liquidate one fund and suspend withdrawals at two others. Key banking partners including Goldman Sachs and Morgan Stanley have also cut ties, while custodian JP Morgan served notice, leaving the firm increasingly isolated. Custodians have a vital role as they safeguard assets for firms’ clients

The allegations have also prompted an investigation by the Financial Conduct Authority, as well as attracting scrutiny from the Treasury select committee.

Odey, who strenuously denies the claims, was ousted at the weekend. The Conservative Party and Brexit donor founded the hedge fund in 1991.