A subsidiary of Odey Asset Management has suspended dealing in funds after allegations against Crispin Odey prompted investors to pull their money from the vehicles.
Investors are now unable to redeem their investments in the Brook Absolute Return fund and Brook Developed Markets fund, run by Brook Asset Management which was set up in November 2020.
The Financial Times has reported that Odey Asset Management’s Swan fund had been closed after a statement on Sunday (June 11) said the partners of the firm were looking at options to put to the fund’s board.
In a letter to investors in the Brooke Absolute Return fund, the fund’s authorised corporate director Link Fund Solutions said it is in the best interests of investors to suspend the issue, cancellation, sale and redemption of shares in the fund.
The suspension is due to the “specific liquidity profile” of the fund “following recent redemptions” and after a “lack of clarity” from providers of certain financial services to Odey.
“Any increased levels of redemptions could lead to the structure of investments in the portfolio not meeting the fund’s stated strategy,” Link said.
A number of financial services companies have severed ties with Odey Asset Management after the FT published allegations of sexual misconduct and abuse against Crispin Odey, which he denied.
Partners at the firm told the FT Crispin Odey would leave the firm in the wake of the allegations.
Goldman Sachs and Exane, as well as the company’s main prime brokers JP Morgan and Morgan Stanley, all cut ties with the firm after the allegations came to light.
Schroders sold all of its remaining investments in Odey's firm but Waverton, 7IM and Columbia Threadneedle all have exposure to funds linked to Odey.
Waverton owns Brook Absolute Return as part of their model portfolio solution, and 7IM owns the same fund in their managed portfolio service.
Columbia Threadneedle has exposure through its CT Multi Manager funds, which hold Brook Continental Europe.
Brook Asset Management was contacted for comment.
sally.hickey@ft.com
