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The City of London started distancing itself from hedge fund manager Crispin Odey hours after the publication of fresh allegations of sexual assault against women over several decades.
Morgan Stanley has begun the process of terminating its prime brokerage relationship with his namesake firm, Odey Asset Management, while JPMorgan Chase & Co. is also reviewing its relationship in light of the claims, according to people with knowledge of the matter, who asked not to be identified because the details are private.
Representatives for Odey Asset Management, Morgan Stanley and JPMorgan declined to comment. Prime brokers offer a range of services to their hedge fund clients, including leverage and trade execution.
The Financial Times, which reported Morgan Stanley’s decision earlier, published an investigation Thursday into Odey’s treatment of women over a 25-year period that included multiple allegations of sexual harassment or assault. A law firm representing Odey said he “strenuously disputed” the allegations, according to the newspaper report.
The allegations are the latest in a series Odey has faced in recent years. In 2021, he was acquitted of assault charges in British courts but new accusations against him surfaced soon after with two women coming forward to Bloomberg News. Later, more appeared in a Tortoise Media Podcast.
Odey is known for courting controversy from his support of Brexit to his conspicuous lifestyle, his short bets against the pound to his spectacular losses and bounce backs.
Last year, Odey celebrated his best ever year of gains with his hedge fund surging 152%, powered mainly by his highly leveraged short wagers on long-dated UK government bonds as inflation and political turmoil roiled the British economy. His fund was down 4% through April this year, according to an investor document.
Source: Fortune
