Odey Asset Management dumps stakes in UK companies

Odey Asset Management has sold down stakes in currency printer De La Rue and a string of other companies as the hedge fund firm attempts to meet investor withdrawal requests.

The group dumped more than half of its 7 per cent stake in the company on Monday, according to a Wednesday filing to the London Stock Exchange, helping to drive shares in the printer of banknotes and passports to a record low of 32p per share this week.

The move is the latest stock sale by Odey Asset Management, which has come under pressure after the Financial Times revealed a series of sexual assault and harassment allegations against founder Crispin Odey, which he strenuously denies.

The allegations have led the firm to halt withdrawals from some its funds as a high volume of investors attempt to pull their money out. Five Odey funds are now listed as suspended, including one that is being liquidated.

Separate filings show the asset manager also sold 6 per cent of auto dealership Pendragon last week, reducing its stake to 4 per cent, as well as 2 per cent of The Restaurant Group. It also reduced its sizeable stake in small-cap stock Advanced Oncotherapy.

Mike Ashley’s Frasers Group last week acquired Odey Asset Management’s 20 per cent stake in electronics vendor AO World, while investment trading business Plus500 said in a stock exchange announcement last week that it had purchased £101mn of its own shares from Odey Asset Management, representing about 8.2 per cent of its share capital.

Odey Asset Management, which removed Crispin Odey as a partner last week following the FT’s revelations, has said it is in “advanced discussions” about transferring certain funds and staff to competitors. Last week the fund had close to $4.4bn of assets under management.

In the past two weeks banking partners including JPMorgan, Goldman Sachs and Morgan Stanley have cut ties with the group. JPMorgan was both broker and custodian to the firm.

Odey Asset Management declined to comment.