The financial manager is accused of sexual harassment. He denies the allegations.
(Photo: Reuters)
London The British hedge fund Odey Asset Management (OAM) tried on Friday to contain the widening crisis surrounding the 64-year-old company founder Crispin Odey. “We are aware of press coverage,” said OAM CEO Peter Martin, “and we are in active discussions with all service providers (…) to ensure investor interests are protected.”
The business newspaper “Financial Times” (FT) reported on Thursday allegations that the company founder and majority owner had sexually harassed 13 women over decades. Odey denies the allegations and speaks of “consensual” relationships.
According to the FT report, the British Financial Supervisory Authority (FCA) has also been investigating this matter for two years. The FCA declined a specific statement and only generally referred to the fact that allegations of misconduct were taken very seriously.
The three major American investment banks Morgan Stanley, JP Morgan and Goldman Sachs are said to have distanced themselves from the hedge fund. The US banks handle the financial transactions for the British company.
Should the Americans terminate their business relationships, this could further exacerbate the crisis at OAM. According to information from the financial information service Bloomberg, the company’s assets under management have fallen from $13 billion to just $3 billion in recent years.
Company founder warns Morgan Stanley
Odey is a colorful figure on the British financial scene and one of the ruling Conservatives’ biggest campaign donors. Allegations of sexual misconduct have been circulating in the City of London for years.
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Assets are managed by the British hedge fund Odey Asset Management (OAM).
Two years ago he was acquitted in one case by a court. Jacob Schmidt, head of financial advisor Schmidt Research Partners, says: “Crispin Odey (…) has long had a reputation for being eccentric and eclectic.” Allegations are rarely unjustified. “As such, I am not surprised that Morgan Stanley has severed ties and other companies are investigating the case given the massive reputational risks.”
However, Odey, who founded the hedge fund in 1991 and has come under scrutiny on several occasions by his firm’s oversight boards over allegations of wrongdoing, warned US banks against legal action: “If you are Morgan Stanley and you stop us from trading, you are immediately.” responsible for any losses our investors suffer as a result.”
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