Oday Asset Management suspends trading of fourth fund

O’Day Asset Management received ‘substantial levels’ of withdrawal demands following allegations of sexual misconduct against founder Crispin O’Day, leading to bankruptcy of one of London’s oldest hedge fund firms Stopped trading the second fund.

In a letter to investors on Friday, the company said it was suspending trading of its $80 million special circumstances fund as it sold assets in an “orderly manner” to fund redemptions.

The suspension is the latest step by the company to contain the impact as investors have been trying to redeem funds from its funds over the past week. Oday Asset Management said on Thursday it was in “preliminary discussions” about transferring some funds and staff to a rival firm.

The decision caps a turbulent week for the company since it was announced by the Financial Times last Thursday. investigation Allegations of sexual assault or harassment by 13 women against Crispin O’Day. He strongly denies the charges.

Oday Asset Management earlier this week Trading halts He also invested in three other funds, Brooke Developed Markets, LF O’Day Portfolio and Brooke Absolute Returns, and closed the O’Day Swan Fund due to higher-than-usual withdrawal requests.

The Swan Fund, managed by Crispin O’Day and holding €117 million in assets, is being liquidated to return funds to shareholders. The suspension of withdrawals from other funds is one of the immediate steps taken by the company to mitigate the impact of investors and financial institutions severing ties with Oday Asset Management.

The FT reported this week. JP Morgan was trying to dissolve the relationship Provides notice regarding prime brokerage and custodian relationships with asset managers. Prime brokers provide stock lending, financing and other services to hedge funds, while custodians protect client funds. It is a regulatory requirement for hedge funds to have a custodian.

UBS followed JPMorgan and Goldman Sachs in moving to end its relationship with prime broker Oday Asset Management.

O’Day Asset Management, which oversees about $4.4 billion, is now rivalry over offloading money from funds and managers in a move that could spell the end of the company founded by Crispin O’Day in 1991. I am in discussion with the company.

“Any sale or re-housing is taken for granted to be subject to relevant regulatory approvals and due diligence for the purpose of an orderly transition of assets and investors,” the company said Thursday. However, it did not disclose the names of the companies involved in the talks.

The company’s largest funds include the Brooke European Focus Fund, run by Oliver Kelton, and the LF Brooke Absolute Return Fund, run by James Hanbury. Oday Asset Management created Brooke Brands in 2020 and renamed several funds.