Odey Asset Management has gated the Brook Developed Markets Fund after redemption requests surged, as it moves to contain a crisis triggered by the publication of sexual assault allegations against its founder, Crispin Odey.
The firm has halted redemptions from the fund, which is run by James Hanbury and Jamie Grimston, after requests exceeded 10% of the fund’s net asset value, according to a letter sent to investors and seen by Bloomberg News. Any requests received on June 12 will be pro-rated, the letter added.
“The board believe that applying the redemption gate is in the best interests of all shareholders and will facilitate the management of the redemption requests received,” the firm told clients in the letter dated June 12. A representative for Odey Asset Management declined to comment.
Odey Asset Management severed ties with Odey over the weekend in the wake of the allegations that he denies. In two letters to clients in recent days, the investment firm has emphasized that Odey no longer has any economic and personal involvement in the partnership.
Read More: Odey’s Firm Fights for Its Future After Rare Split With Founder
The majority of the firm’s about $4.3 billion in assets are managed by portfolio managers other than Crispin Odey, including Hanbury and Oliver Kelton. As of the end of March, Odey ran about $1.4 billion with his co-manager Freddie Neave.
The Brook Developed Markets fund had $569 million in assets at the end of May and was up 9.4% this year through June 9, according to the firm’s website.
(Updates with investor letter details from the third paragraph)
