Crispin Odey Firm Signals Possible Return for Hedge Fund Founder

Ben Stupples, Bloomberg News

Crispin Odey , Bloomberg

(Bloomberg) -- Crispin Odey has kept a low public profile ever since fresh allegations of sexual misconduct prompted his exit last year from the namesake hedge fund he founded that is now winding down. A recent company filing suggests he harbors comeback hopes.

Odey Asset Management Group Ltd. said in its latest accounts, filed Feb. 28, that it “is currently exploring alternative business opportunities.” Odey, the sole signatory of the firm’s strategic report, is the only director of the entity, which previously oversaw his stakes in Odey Asset Management LLP and Odey Wealth Management (UK) Ltd., according to UK registry filings.

Odey, 65, who has disputed the claims against him, didn’t respond to a request for comment.

Odey Asset Management spiraled last year after the Financial Times reported fresh sexual harassment and assault allegations against Odey, who founded the firm in 1991 and earned a reputation for making contrarian bets that put him among some of Britain’s richest hedge fund investors.

Several banks severed ties and investors raced for the exits in the fallout from the allegations, leading to other money managers taking on Odey Asset Management LLP’s staff and funds.

In June, Odey was removed from the firm and he’s since stepped back as a director from several other companies, including those overseeing assets for his adult children, according to registry filings. He has described himself as a victim of a “witch hunt.”

Odey Asset Management LLP said in a December update on its website that it is no longer responsible for managing any clients while the majority of Odey Wealth Management clients have either left or are in transit.

Odey Asset Management Group reported a loss of £4.7 million ($6 million) for the year ended April 5, 2023, compared to a £1.8 million profit in the previous period. The company said the winding down of the hedge fund and wealth businesses it counted as subsidiaries will significantly impact its current and future profitability, though it also reported shareholder capital and reserves of £21.9 million. It didn’t pay a dividend.

“The director has a reasonable expectation that the company has adequate resources to continue in operational existence,” the report added.

(Updates with details of Odey Asset Management LLP’s wind down in seventh paragraph.)