This was quick but to be expected. #MeToo allegations of sexual harassment are the death blow to any career and the justifiable end of a reputation. Uk hedge fund manager Crispin Odey had to find that out, too. He has been fired from Odey Asset Management, which he founded, following a Financial Times report about the sexual harassment of many women over the past 20 years. But now the firm appears to be on the verge of quitting business anyway. All this happened within a few days.
Odey Asset Management is undergoing a dismantling process as the troubled hedge fund firm announces that it is engaged in “advanced discussions” to transfer specific funds and employees to competing firms following allegations of sexual misconduct against its founder.
Odey Asset Management is facing difficulties as JPMorgan Chase has served notice on its agreement to act as the custodian for the hedge fund’s clients, jeopardizing its ability to safeguard assets. This follows similar actions by Morgan Stanley and Goldman Sachs last week, making JPMorgan the last major bank to sever ties with the hedge fund. The decision by JPMorgan to withdraw its services represents another setback for the London-based hedge fund, which has already been compelled to halt trading in two funds managed by its subsidiary, Brook Asset Management.
For a hedge fund to operate in the UK, it is a legal requirement to have a custodian, and operating without one would place Odey Asset Management in violation of the Financial Conduct Authority’s regulations, according to a source familiar with the regulator’s stance. The FCA’s rule book also mandates that the outgoing custodian find a suitable replacement, which market sources suggest may be challenging. Many of Odey Asset Management‘s business partners have severed ties with the firm in light of allegations of serial sexual assault made against its founder, Crispin Odey, as revealed in a recent investigation by the Financial Times. Odey vehemently denies these allegations.
According to the Financial Times investigations, the hedge fund’s executives allegedly knew about Odey’s ongoing sexual harassment. They are believed to have been part of the company’s culture and tolerated. For this, the company named after its founder is now paying the ultimate price.
