Odey Asset Management (OAM) has proposed to restructure two of its key funds, according to letters to investors reviewed by Reuters, as part of efforts to extract founder Crispin Odey from the business after several assault and harassment allegations surfaced against him.
The London-based investment firm is planning to switch shareholders’ investments in the OEI Mac and Odey European funds to two new funds, which would then be rehoused under a new firm, the letter added.
Freddie Neave, who took over managing OEI Mac and Odey European from Crispin Odey three weeks ago, would run the new funds and leave to work at the new firm.
“It is expected that Crispin Odey would not switch to the new fund and would remain in the existing fund,” OAM said in both letters.
The firm the alternative to this proposal would be to compulsorily redeem investors in the funds.
The hedge fund is also in advanced talks with Lancaster Investment Management over the transfer of five funds and manager James Hanbury, a another company letter on Friday reviewed by Reuters showed.
Odey, 64, was ousted this month from the firm he founded in 1991 after the Financial Times and Tortoise Media on June 8 jointly reported on allegations from 13 women. Odey has denied the allegations.