Odey Swan Fund Assets Collapsed 37% in Two Days Before Closing

The assets of Odey Asset Management’s Swan fund slumped 37% in the run-up to the firm’s decision to shut it down as clients rushed for the exit following fresh sexual assault allegations against its founder Crispin Odey.

(Bloomberg) — The assets of Odey Asset Management’s Swan fund slumped 37% in the run-up to the firm’s decision to shut it down as clients rushed for the exit following fresh sexual assault allegations against its founder Crispin Odey.

The fund managed $81.2 million on June 12, down from $128.3 million on June 8, according to data compiled by Bloomberg. Last week, the Financial Times published new investigation into Odey’s conduct over two decades that included multiple allegations of sexual harassment and assault.

Since then, the London-based firm has removed Odey from its partnership, suspended withdrawals from two funds, while multiple banking partners have cut ties. A spokesman for the company declined to comment.

In an investor letter dated June 12, the firm said it had halted all dealings in the Odey Swan fund and will redeem investors by Sept. 4. The fund, whose assets reached a peak of about $690 million in 2016, has lost about 4% since Thursday.

 

The Swan fund was run by Odey himself with its trading and wagers sharing many common characteristics with his flagship European Inc. hedge fund, which uses higher leverage to juice gains. The two even shared Odey’s monthly commentary widely tracked for his market predictions, the most noteworthy of which rarely came true over the course of his losses and gains since 2015.

The European Inc. hedge fund has now been passed on to Odey’s co-manager Freddie Neave following his removal.

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