Odey Asset Administration in talks with SW Mitchell over Oliver Kelton funds

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Odey Asset Administration is in “superior talks” about transferring 4 funds and their supervisor, Oliver Kelton, to funding boutique SW Mitchell Capital, because the hedge fund reels from sexual assault allegations in opposition to its founder Crispin Odey.

In a letter to shoppers on Tuesday and seen by the Monetary Instances, Odey Asset Administration stated the funds it intends to modify embrace Brook Continental European, Brook European Focus, Brook European Focus Absolute Return and Odey Pan European.

In response to the agency’s web site, the most important of those is Brook European Focus, which manages €713 million in belongings. Kelton took over the pan-European Odey fund earlier this month from Crispin Odey after companions within the agency he based expelled the financier in response to the accusations in opposition to him.

The talks come after the signing saying earlier this month, it was in superior discussions about switching funds to rivals, as a part of broader strikes to comprise the fallout from the allegations and as traders. hastened to retire your cash.

SW Mitchell Capital is the primary potential purchaser named for the corporate’s belongings since Odey Asset Administration introduced it will cut up two weeks in the past, following an FT investigation into allegations by 13 ladies. Crispin Odey strongly denies the allegations. Odey Asset Administration, established in 1991, manages about $4.4 billion.

SW Mitchell Capital is a London-based European fairness funding boutique based in 2005. The agency manages belongings for shoppers around the globe, together with pension funds, charities and monetary advisers.

His managing associate, Stuart Mitchell, used to work at JO Hambro Funding Administration, the place Kelton additionally used to work.

SW Mitchell Capital didn’t instantly reply to a request for remark. Odey Asset Administration declined to remark.

Odey Asset Administration stated in Tuesday’s letter that talks with SW Mitchell are nonetheless topic to approval by regulators and fund boards. The letter added that “related discussions are ongoing in relation to different funds” managed by Odey Asset Administration.

The agency created a subsidiary in 2020 beneath a brand new model, Brook, for funds that had been run by managers apart from Crispin Odey.

The most recent growth comes hours after Odey Asset Administration informed shoppers it was droop the itemizing of two of its funds which had been beforehand run by Crispin Odey. The agency halted buying and selling in its flagship funds Odey European Inc and OEI Mac, which it stated in a notice to traders was resulting from consumer refunds.

Odey Asset Administration has been compelled to droop buying and selling in lots of its funds as traders have tried to withdraw their cash.

As of this week, 5 funds have been suspended, together with its Swan fund, which the corporate says might be liquidated and the cash returned to traders. The 2 hedge funds, Odey European Inc and OEI Mac, had been subsequently suspended.

The funds got here beneath stress after Odey Asset Administration’s banking companions, which included JPMorgan, Goldman Sachs and Morgan Stanley, pulled the plug in its main brokerage relationship with the corporate. JPMorgan has additionally moved to interrupt its custodian relationship. Main brokers present hedge funds with loans to extend returns and hedging merchandise to guard in opposition to losses, whereas custodians shield consumer belongings.

Extra reporting by Costas Mourselas in London

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