Odey Asset Management's flagship hedge fund, Odey European Inc., has been suspended following a surge of redemption requests.
According to an investor letter seen by Bloomberg, about 19% of the fund has been hit by withdrawal requests for its next dealing day on 3 July.
The firm wrote that given the level of requested redemptions, investor concentration and liquidity profile of the fund, the fund board has decided it would not be "in the best interests of the fund and its shareholders" to continue to permit issues and redemptions of shares.
Crispin Odey no longer regulated to deal directly with clients
Odey AM is also considering restructuring the fund's operations, which might allow investors transfer their investments to a new fund, it wrote in the letter.
The suspension comes after the Odey executive committee removed Crispin Odey as a member of the partnership on 10 June and redistributed management of his funds across the remaining team, as a result of an FT investigation into allegations of sexual misconduct.
Odey AM employee assets restricted by FCA
Founder Crispin Odey managed the firm's flagship hedge fund until he was removed from the partnership, with Freddie Neave taking over from him.
Odey European Inc. is the sixth fund to be suspended in the wake of the allegations. The LF Brook Absolute Return, Brook Developed Markets, LF Odey Portfolio and Odey Special Situations funds have also been suspended due to an investor exodus, while Odey Swan is set to close.
Odey AM has declined to comment.
