Odey Asset Management Announces Departure of Founder Crispin Odey After Sexual Misconduct Allegations
Odey Asset Management Group, a UK-based hedge fund, has announced that its founder, Crispin Odey, will leave the firm after being accused of sexual misconduct by 13 women. Odey and his company have been under scrutiny since the Financial Times released an article alleging that Odey had sexually assaulted or harassed women over a 25-year period. Odey Asset Management confirmed that it would remove Odey and his holding company from managing the fund, handing over control to remaining partners.
The company also confirmed that it was investigating the allegations against Odey, but couldn’t disclose any details due to confidentiality reasons. The Financial Conduct Authority, which has been investigating the firm, has been informed about the change in management. Several financial institutions are cutting ties with the company in response to the allegations.
Odey’s departure from the company would be difficult due to the complex structure of the group, with different holding companies being legally interconnected. The former partner of Odey said he had to go since he misused his power as the boss consistently, leading to drastic actions being taken. Goldman Sachs began dissolving its relationship with Odey Asset Management, which includes Brook Asset Management, on Friday, among other financial institutions.
Odey had built a reputation in the City of London for over three decades. Odey Asset Management, which he founded, had made high-risk punts in the market, offering huge returns and substantial losses. The hedge fund founder had also made significant donations to the UK Conservative Party and the anti-immigration party UKIP, as well as anti-EU lobby groups. In 2022, betting against the pound benefited Odey, with his flagship fund achieving a 152% gain in the year.
Engaging Additional Piece
The financial industry is predominantly male-dominated, especially at the top levels where executive positions are filled almost entirely with men. In recent years, the #MeToo movement has shone a spotlight on sexual harassment at work and revealed how much work still needs to be done to create an equal and safe workplace.
While companies have started making changes, including hiring more women and creating policies and procedures to prevent sexual harassment and discrimination, these changes aren’t always enough. Often, women’s accusations are ignored, and the perpetrators continue to get away with their behavior.
The Crispin Odey case reflects this pattern of ignoring and disregarding women’s complaints in the workplace. It raises the question of why it’s only after multiple women come forward with allegations that companies listen and respond.
The financial industry must create a safe environment for both men and women free from harassment and discrimination. It can start by creating policies and procedures that protect women and ensure that they are not silenced if they do come forward with complaints. These policies must be enforced, and those that abuse their position of power must be held accountable.
Many believe that the industry must also change its overall attitude towards women and minorities. It is widely acknowledged that diversity presents a competitive advantage in financial services, so we must do more to attract, retain, promote and develop talent from different backgrounds. Companies that provide an environment that is more inclusive, welcoming, and supportive of different backgrounds will create a culture that encourages diversity and innovation.
Summary
The founder of Odey Asset Management, Crispin Odey, will step down after allegations of sexual misconduct emerged. Thirteen women accused Odey of sexual harassment and misconduct, leading to the company asking him to leave the firm. Odey Asset Management will remove Odey and his holding company from managing the fund, with control handed over to remaining partners. Odey is a prominent figure in the City of London and received widespread attention for placing high-risk bets in the market. The Financial Conduct Authority has been investigating the firm. Goldman Sachs and other financial institutions have curtailed their relationships with Odey Asset Management as a result of the allegations.
There is still more to be done across the financial services sector in addressing workplace harassment and discrimination. Policies and procedures should be enshrined to protect employees, and creating an open culture that recognizes and supports diversity will encourage innovation and growth.
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Odey Asset Management partners said founder Crispin Odey will leave the firm after 13 women accused him of sexual misconduct.
The high-profile financier and his company have been at the center of a growing crisis after the Financial Times reported on Thursday that 13 women alleged that Odey had sexually assaulted or harassed them in various incidents over a 25-year period.
“Mr. Crispin Odey is leaving the company. As of today, he will no longer have any economic or personal involvement in the partnership,” Peter Martin, chief executive officer, and Michael Ede, chief financial and operating officer, wrote in a statement viewed by the FT on Saturday.
They added that Odey Asset Management Group Limited, a holding company which is part of the group and majority-owned by Odey, would also be removed as a member and that the partnership would now be owned and controlled by the remaining partners.
In the statement, Odey Asset Management also confirmed that it “has been investigating the allegations regarding Mr. Odey” but said it could not comment in detail due to confidentiality reasons. He said “further communications” with customers would follow over the weekend.
Reached by telephone at lunchtime on Saturday, Odey confirmed he had been informed of the company’s decision, but suggested resistance. “You must have [a] willing buyer, willing seller,” he said. He provided no further comment.
A law firm representing Odey had previously said the allegations brought against him were “strenuously contested”. Odey said this week that “neither of the allegations have been sustained in a courtroom or in an investigation.”
A former partner said of Odey: “The emperor now has no clothes and is losing his powers. It’s very good not to be there anymore. They had to get rid of him. He clearly has to go. In the end the boss got shoved because he went too far ”.
Odey has been a major figure in the City of London for more than three decades. Since founding Odey Asset Management in 1991, he has cultivated a reputation for accepting high-risk punts in the market, offering huge returns and huge losses.
He has also donated large sums to the UK Conservative Party and the anti-immigration party Ukip, as well as anti-EU lobby groups. In 2022, Odey benefited from steep declines in the value of the pound after betting against the pound. Its flagship fund gained 152% in 2022.
Odey stepped down as co-CEO of the company in November 2020 but remained the majority owner. In the same month, Brook Asset Management was founded and nearly half of the firm’s funds, including those of lead partners James Hanbury and Oliver Kelton, were rebranded under the Brook name.
Several major financial institutions had already moved to cut ties with the firm in response to the FT’s signal.
hexane, which is owned by French bank BNP Paribas, told Odey Asset Management on Thursday it was breaking off the relationship. Goldman Sachs began dissolving its relationship, including with Brook Asset Management, on Friday.
The Financial Conduct Authority, which approves the management of financial services firms and is investigating OAM, has been notified of the planned change of control of the company, a person with knowledge of the situation said. The FCA declined to comment.
The last time Odey’s executive committee tried to discipline him for his behavior towards women, after he broke a “last written warning” in 2021 that prohibited him from behaving inappropriately around female staff, he fired.
According to the former partner, Odey’s extraction from the company he founded will be complicated due to its “convoluted structure” with different holding companies within the group being legally interconnected. The back office, legal, compliance and marketing departments are shared.
“As we have stated previously, the Executive Board takes all allegations of misconduct very seriously. The firm has robust policies and procedures that have been followed at all times,” the Odey Asset Management statement added.
https://www.ft.com/content/c5529a44-cc41-464f-92d4-f81bc44c6687
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