Odey suspends flagship hedge fund after redemption pressure – reports
Odey Asset Management has suspended its flagship hedge fund after it was hit with redemption requests following the removal of founder Crispin Odey, Bloomberg News reported on Monday.
The company received withdrawal requests that amounted to over 19 per cent of the Odey European Inc hedge fund for its next dealing day on July 3, the report said, citing a letter from the company to clients.
“Given the level of requested redemptions, investor concentration and liquidity profile of the fund, the fund board has determined that it would not be in the best interests of the fund and its shareholders as a whole to continue to permit issues and redemptions of shares,” Bloomberg said, quoting the letter.
Odey Asset Management did not immediately respond to a Reuters request for comment.
The hedge fund has grappled with investor flight since the Financial Times and Tortoise Media on June 8 jointly reported allegations by 13 women that Crispin Odey had sexually assaulted or harassed them over a 25-year period. Odey has denied the allegations.
The Financial Times reported last week that British regulator Financial Conduct Authority (FCA) restricted the movement of cash and assets from Odey Asset Management to restore order at the firm.
Reuters