Odey Wealth tells customers it is ‘considering options’ for the business

The board of Odey Wealth Management has told customers it is “considering several options” for the business after sexual misconduct allegations against founder Crispin Odey.

Odey Wealth, which opened in 2008 to manage money on behalf of private clients, said in a letter to its customers on Sunday that the “events of the last week have had a serious impact on our business”.

The letter, which has been seen by the Financial Times, added: “The Odey Wealth Management . . . boards are considering several options for the wealth business and your team remains fully in place to guide you through the next few months.”

However, it said the wealth manager had sufficient capital and that client assets are held in custody with a third-party company, Pershing.

On Sunday evening, the FT reported that the Financial Conduct Authority restricted the movement of cash and assets from Odey Asset Management and Odey Wealth to shore them up, after clients withdrew money and financial institutions cut ties in the wake of the allegations.

According to the letter, the boards of Odey European Inc and Odey MAC, two of Odey’s flagship funds, are “monitoring the level of redemptions received”. A number of other funds have been suspended following a surge in customer requests to withdraw their money.

The latest developments come after Odey Asset Management, one of London’s oldest hedge fund firms, said last week that it was in “advanced discussions” about transferring certain funds and staff to competitors.

Odey Asset Management, which oversees about $4.4bn, has attempted to contain the fallout after a Financial Times investigation this month reported allegations of sexual assault or harassment from 13 women against Crispin Odey. He strenuously denies the allegations.

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

The letter from Odey Wealth said that “hedge funds cannot operate effectively without the services provided by prime brokers, and this has led to actions being taken by the various fund boards”.

Odey Asset Management said last week it was closing the Odey Swan fund, which was managed by Crispin Odey, and had suspended trading in four other funds, including Special Situations, Brook Developed Markets, LF Odey Portfolio and Brook Absolute Return.

Odey was removed as a partner of Odey Asset Management last week, while his holding company, Odey Asset Management Group Limited, was also removed as a member.

Odey Wealth Management declined to comment.