Odey Asset Management has written to clients that it is considering the sale or rehousing of several of its funds following "recent events" surrounding its founder Crispin Odey.
Odey has been the centre of an investigation by the Financial Times concerning allegations of sexual misconduct, which has led to the founder's removal from the firm as well as the closure and gating of several of Odey AM funds.
Treasury Committee questions FCA oversight of Crispin Odey and Odey AM
In the letter to shareholders seen by Investment Week, Odey AM said it has "become clear that some investment management activities of the partnership are affected by recent events".
The partnership for the firm said that given the events, it is now "in advanced discussions for rehousing funds and transferring certain fund management activities and individuals to other asset managers", a move which had the support of both the board and fund managers at the firm, according to the letter.
It added that any sale of rehousing of products would be subject to regulatory approvals and due diligence, but was focused on "an orderly transition of any assets and investors".
So far, Odey Asset Management has suspended its Swan fund, while subsidiary Brook Asset Management has suspended redemption requests for its Developed Markets fund and suspended the £530m LF Brook Absolute Return fund.
The reported events were subject to an ongoing investigation by the Financial Conduct Authority into conduct at the firm, with the Treasury Committee recently questioning the regulator's oversight of the firm and Odey himself.
