Goldman Sachs joins JPMorgan, Morgan Stanley in Odey Asset Management review ties -sources
2023.06.08 15:11
© Reuters. FILE PHOTO: Hedge fund manager Crispin Odey sits in a vehicle departing Westminster Magistrates’ Court, after being found not guilty of indecent assault, during a three-day long trial in London, Britain, March 11, 2021. REUTERS/John Sibley
By Nell Mackenzie and Kirstin Ridley
LONDON (Reuters) -Goldman Sachs, JPMorgan (NYSE:) and Morgan Stanley (NYSE:) are reviewing their prime broking relationships with Odey Asset Management after allegations of sexual misconduct were reported by the Financial Times and Tortoise Media on Thursday, sources familiar with the matter said.
The FT reported that 13 women alleged founder and owner Crispin Odey had sexually assaulted or harassed them over a 25-year period.
“This is a rehash of an old article and none of the allegations have been stood up in a courtroom or an investigation,” Crispin Odey told Reuters by phone.
Odey was cleared of indecent assault charges by a British court in 2021. The UK regulator, the Financial Conduct Authority, has been investigating Odey since 2021.
An FCA spokesperson said: “We are unable to comment on individuals or specific firms. However, we take allegations of non-financial misconduct seriously and expect firms to have adequate governance procedures in place that ensures allegations of misconduct are properly investigated.”
Odey Asset Management did not respond immediately to four phone calls and four emails requesting comment on the bank reviews and the FCA investigation, including Goldman Sachs (NYSE:).
Referring to Morgan Stanley’s plans to cut back its prime broking relationship with Odey Asset Management, Odey told Reuters: “That is a massively quick reaction to an allegation by the FT.”
The FT was also the first to report news of Morgan Stanley’s decision, which a source confirmed to Reuters independently.
A source familiar with the matter told Reuters JPMorgan was also reviewing its relationship with Odey Asset Management.
Prime brokers lend hedge funds the money they need in order to facilitate investments. Their backing can be essential to the functioning of the hedge fund.
A source at one of the banks said the allegations of misconduct at Odey Asset Management conflicted with their standards.
Duncan Lamont, a consultant at law firm Charles Russell Speechlys, which represents Odey Asset Management, did not respond to repeated calls and emails asking for comment.
Morgan Stanley and JPMorgan declined to comment. UBS and Goldman Sachs, whose regulatory filings also show them as prime brokers to Odey Asset Management, also declined to comment.
Crispin Odey, one of Britain’s best-known hedge fund managers and a leading backer of Brexit, came to prominence during the 2008 financial crisis when he made a fortune shorting banking shares.
Reuters reported in September 2022 that Odey Asset Management oversaw about 4 billion pounds in assets.
