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Crispin Odey

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Robin Crispin William Odey (born January 1959)[2][3] is a British hedge fund manager and founder of Odey Asset Management. According to Bloomberg in November 2017, he is "known for his bearish outlook" on the markets.[4]

Crispin Odey
BornJanuary 1959 (age 65)
Yorkshire, England
EducationHarrow School
Alma materChrist Church, Oxford
Occupation(s)Investor, fund manager
Known forOdey Asset Management
Spouses
​
​
(m. 1985; div. 1986)​
​
​
(m. 1991; div. 2021)​
[1]
Diana Vitkova
​
(m. 2022)​
Children3
RelativesGeorge Odey (grandfather)
Websitewww.odey.com

In June 2023, the Financial Times published an investigative report on Odey which alleged that he had sexually harassed or assaulted 13 women over the course of 25 years.[5][6] Odey Asset Management announced shortly afterwards that Odey would be leaving the firm.[7] Investors soon started pulling their money from the firm following the report, prompting it to suspend withdrawals.[8] In late June 2023 the company suspended flagship hedge funds, and it was speculated that it might break up.[9]

Early life and education

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Odey was born in the East Riding of Yorkshire, the only son of (George) Richard Odey.[10] His father was from a family of Yorkshire industrialists, and his grandfather George Odey, "a formidable bully", had been the Conservative MP for Beverley.[11] His mother's maiden name was Clitherow.[11] In 1980, his sister Caroline married the Hon. Henry David Montgomery, the son of David Montgomery, 2nd Viscount Montgomery of Alamein and heir apparent to the viscountcy. They have three children.

He was educated at Harrow School, where his father had been head boy, and graduated from Christ Church, Oxford in 1980 with a degree in history and economics.[12][13] Soon after graduation, he found out that his father had huge debts, and the trustees of Hotham Hall, a 4,000-acre estate that had been in his mother's family since 1720, transferred it to him absolutely.[11] Aged 23, he sold everything.[11] According to Odey, his father was a "wastrel from beginning to end", and survived on handouts from his son.[11]

Career

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Early funds

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After university Odey qualified as a barrister but instead of taking up a legal career, he joined Framlington fund managers, and then left to work for Barings International, where he managed the Baring European Growth Trust. He ran continental European pension funds at Framlington and Barings.[2][14][15]

1991–2015: Odey Asset Management founding

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Odey founded Odey Asset Management in 1991.[15] George Soros was one of the original investors, seeding Odey $150 million.[14] Odey suffered large losses in 1994 when the Federal Reserve unexpectedly lifted interest rates (one of his funds lost 44 per cent of its value), but went on to thrive, for instance by foreseeing that the value of insurers would rise after the September 11 attacks on New York in 2001.[14][16] Through the early part of the 2000s, Odey worked closely with Hugh Hendry, whom he had recruited and who ran Odey's top performing Continental Europe Fund. Hendry left in 2005 to establish Eclectica Asset Management. In reference to Hendry, Odey himself said: "Odey in the 1990s was a one-man band; Odey in the 2000s was a two-man band".[14]

According to The New York Times, Odey "came to prominence during the 2008 financial crisis when he shorted banking shares, a lucrative wager that helped him to earn almost 28 million pounds that year".[17] That year his return was 54.8 per cent.[14] He had been bearish about the position of banks for a number of years, shorting Bradford & Bingley as early as 2005, questioning the German Landesbanks and warning consistently about the dangers of debt and inflated house prices. He continued his short positions into early 2009 but in April took longer positions as he predicted the market rally of that year.[2] The Times newspaper selected Odey as a "Business Big Shot" in 2008.[18]

In May 2009, Odey attracted some controversy for saying in The Times that he would leave the country to avoid paying 50% income tax.[19] He was at the centre of further controversy in 2009 when it was suggested that he financially backed anti-EU campaigners in the Irish referendum on the Lisbon Treaty[20] while some hedge funds had taken out specific bets on the insolvency of the country in the event that the vote not be carried.[21] The Treaty passed by a margin of 67.1 per cent to 32.9 per cent.[22] In faxes sent to RTÉ and TV3, Odey denied that he had funded the Libertas "no" campaign.[23]

In May 2010, Odey Asset Management formed a new investment management firm with Geneva's Bruellan Wealth Management called Odey Bruellan.[24] In April 2011, the firm had $6.5 to $7 billion under management, with Odey personally running $4 billion of assets.[14] Odey Asset Management's Odey European Inc. fund was ranked No. 5 on Bloomberg's 2012 list of the 100 Top-Performing Large Hedge Funds.[25]

2016–2019

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In 2016, it was reported that Odey saw his personal fortune drop by £200 million after profits at Odey Asset Management suffered a significant decline. His salary was cut because profits were down nearly 45% from the previous year.[26][27]

In 2016, Odey was a prominent backer of Brexit,[28] arguing it would allow the UK to govern itself.[29] Later that year, his hedge fund won about 15% of its value following the results of the Brexit referendum.[30] He told the BBC on the morning of the result that he had made £220 million speculating that the markets would fall, saying "'Il mattino ha l'oro in bocca' – the morning has gold in its mouth".[31] Overall, his flagship fund made losses of almost 50% in 2016. The firm's operating profits dropped from 44.3 million pounds to 18.6 million pounds in 2016.[17]

In June 2017, The Daily Telegraph reported that his fund had profited from the drop in the value of the pound that resulted from a hung parliament.[29] In August 2017, he remained an investor in Sky.[32] After initially backing the Fox bid for Sky, in November 2017, he opposed the bid, after Sky's financial results proved "better than people forecast."[33]

Assets under management at the fund dropped from $11.7 billion at the start of 2015, to $5.5 billion in September 2017.[34] Also, funds in his flagship fund, Odey European, fell from €2.5 billion at the start of 2015 to €184 million.[28] The Financial Times chalked the losses in part to "poorly timed" trades.[28] On 5 January 2018, The New York Times reported that Odey Asset Management had lost more than a fifth of its value in 2017, dropping around 20.5 percent.

The New York Times reported that Odey's fund's "performance has suffered heavily after he took a negative stance on the outlook for the global economy and bearish positions against shares that have not borne fruit."[17] He had also made "bets against the Fed", explaining to his clients that "it would certainly be simpler to follow the market. But then we would be ignoring the fundamental data". He had also assumed there would be a crash resulting from high interest rates.[35]

In February 2019, less than two months before the then Brexit date, Odey again bet against the pound.[36]

Since 2020: sexual assault allegations and departure from firm

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In May 2020, Odey was charged with indecent assault after a complaint by a woman over an incident in 1998.[37] Odey denied the charge at Westminster Magistrates' Court in September and was bailed to appear at Hendon magistrates' court in February 2021.[38] After a trial at Westminster Magistrates' Court in March 2021, Odey was cleared of the charge.[39][40]

In June 2023, the Financial Times reported allegations that he had sexually harassed or assaulted 13 women over 25 years.[41] Odey denied the allegations.[42][5] Following the Financial Times report, it was reported that Financial Conduct Authority was preparing to launch an investigation into Odey Asset Management regarding the allegations about Odey.[43][44] It was also announced that Morgan Stanley and JPMorgan Chase were cancelling their relationships with the firm.[43][45][46]

On 10 June, Odey Asset Management's executive committee said that Odey was no longer involved with the firm, commenting "he will no longer have any economic or personal involvement in the partnership."[47][7] The firm announced that it will now be "owned and controlled by the remaining partners and managed as an independent legal entity."[7] Shortly after, the company announced its plan to rebrand, removing Odey's name from the firm's name.[48]

Personal life

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Odey was briefly married to Rupert Murdoch's eldest daughter, Prudence. The marriage lasted 15 months, and they had no children.[49][50]

He subsequently married Nichola Pease, deputy chairman of JO Hambro Capital Management and a member of one of the founding families of Barclays Bank.[2][16][51] The couple had two sons and one daughter.

According to the Sunday Times Rich List 2019, Odey and his wife Nichola Pease were worth £775 million.[52] They divorced in 2021.[53] Odey married Diana Vitkova the following year.[5]

See also

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References

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  1. ^ Guardian Staff (7 December 2008). "How The Pease Dynasty is linked to the credit crunch". The Guardian. Retrieved 27 July 2020.
  2. ^ a b c d O'Hannelly, Padraig. "Investment Greats: Crispin Odey", Motley Fool, 2 October 2009. Retrieved 13 June 2012.
  3. ^ "Robin Crispin William ODEY – Personal Appointments (free information from Companies House)". Beta.companieshouse.gov.uk. Retrieved 20 June 2017.
  4. ^ Kumar, Nishant (1 October 2017). "Odey Sees 'Terrifying' Mix in MiFID, Tapering, Asset Values". Bloomberg. New York. Retrieved 7 January 2017.
  5. ^ a b c How Crispin Odey evaded sexual assault allegations for decades, Madison Marriage, Antonia Cundy and Paul Caruana Galizia, 8 June 2023, Financial Times
  6. ^ "Odey Asset Management investigated as sexual harassment claims emerge". BBC News. 8 June 2023. Retrieved 9 June 2023.
  7. ^ a b c "Crispin Odey to leave hedge fund after sexual misconduct claims, partners say". BBC News. 10 June 2023. Retrieved 14 June 2023.
  8. ^ Mackenzie, Nell (16 June 2023). "Odey Asset Management suspends further funds after investor flight". Reuters. Retrieved 16 June 2023.
  9. ^ Martin, Ben (27 June 2023). "Odey firm faces break-up as it starts shifting funds". The Times.
  10. ^ "Preview 0008310 – Murdochs Daughter Weds Newspaper proprietor Rupert Murdoch with his daughter Prudence 26 and his new son in law Crispin Odey when the couple married today at St Michaels Church in Chester Square London Mr Odey the only son of Mr & Mrs Richard Odey of Hotham Hall Yorkshire is an insurance broker – 24th May 1985". Topfoto. Archived from the original on 12 March 2018. Retrieved 20 June 2017.
  11. ^ a b c d e Edwardes, Charlotte (20 November 2012). "Crispin Odey: David Cameron is not a leader, doesn't understand power and doesn't use it". London Evening Standard. Retrieved 20 June 2017.
  12. ^ "Our People". Odey. Archived from the original on 19 March 2014. Retrieved 12 April 2018.
  13. ^ "Middle Temple". www.middletemple.org.uk. Retrieved 12 April 2018.
  14. ^ a b c d e f Blackhurst, Chris (1 April 2011). "The MT Interview: Crispin Odey of Odey Asset Management". Management Today. Retrieved 13 June 2012.
  15. ^ a b "Manager Factsheet: Crispin Odey", Trustnet. Retrieved 13 June 2012.
  16. ^ a b Teather, David (4 August 2008). "Crispin Odey: Hedge fund manager pays himself £28m after thriving during credit crunch". The Guardian. London. Retrieved 13 June 2012.
  17. ^ a b c Martin, Ben; Weir, Keith (5 January 2018). "Odey Hedge Fund Lost More Than a Fifth of Value in 2017". The New York Times. Reuters. Retrieved 6 January 2017.
  18. ^ Gray, Sadie. "Business movers and shakers". The Times. London. Archived from the original on 12 June 2011. Retrieved 4 March 2012.
  19. ^ Gray, Sadie. "Banking and finance". The Times. London. Retrieved 4 March 2012.[dead link‍]
  20. ^ Molloy, Thomas (29 September 2009). "Odey one of the most successful financiers in UK". Irish Independent. Dublin. Retrieved 13 June 2012.
  21. ^ "Funding allegations dominate Lisbon debate". The Irish Times. Dublin. 29 September 2009.
  22. ^ "Taoiseach welcomes 'decisive step'". RTÉ News. 3 October 2009. Retrieved 4 March 2012.
  23. ^ "Odey denies funding Ganley no campaign", politics.ie, 30 September 2009. Retrieved 13 June 2012.
  24. ^ Giles, Warren (10 May 2010). "Odey Forms Joint-Venture Firm With Geneva's Bruellan". Bloomberg. New York. Retrieved 8 January 2017.
  25. ^ "The 100 Top-Performing Large Hedge Funds". www.bloomberg.com. 3 January 2013. Archived from the original on 14 February 2013.
  26. ^ "Hedge fund manager goes from billionaire to millionaire in profits plunge". The Guardian. London. Press Association. 22 April 2016. Retrieved 20 June 2017.
  27. ^ Bow, Michael (22 April 2016). "Crispin Odey warns of banking crisis as profits nosedive". London Evening Standard. Retrieved 20 June 2017.
  28. ^ a b c Johnson, Miles (24 October 2017). "Poorly timed trades crush fund assets managed by Crispin Odey". Financial Times. London. Retrieved 7 January 2017.
  29. ^ a b Martin, Ben (9 June 2017). "Crispin Odey's hedge fund profits from pound's election slide". The Daily Telegraph. London. Retrieved 7 January 2017.
  30. ^ Wainewright, Will (24 June 2016). "Crispin Odey's Main Hedge Fund Said to Gain 15% on Brexit Vote". Bloomberg. New York. Retrieved 24 August 2016.
  31. ^ Cowburn, Ashley (23 September 2016). "Hedge fund manager describes moment he won £220 million on Brexit vote: 'The morning has gold in its mouth'". The Independent. Retrieved 13 December 2022.
  32. ^ Elder, Bryce (11 August 2017). "Crispin Odey digs in over his Sky stake as Murdoch circles". Financial Times. London. Retrieved 7 January 2017.
  33. ^ Martin, Ben (7 November 2017). "Sky investor Crispin Odey opposes Fox bid as Disney talks fuel uncertainty". The Globe and Mail. Toronto. Retrieved 7 January 2017.
  34. ^ Williams-Grut, Oscar (1 November 2017). "Top hedge fund manager Crispin Odey: Markets are 'starting to go hyperbolic'". Business Insider. Retrieved 7 January 2017.
  35. ^ Baker, Phillip (27 October 2017). "The big mistake Crispin Odey made fighting the Fed". The Australian Financial Review. Melbourne. Retrieved 7 January 2017.
  36. ^ "Crispin Odey Is Shorting the Pound Again". www.bloomberg.com. 18 February 2019. Retrieved 16 March 2021.
  37. ^ Hardy, Jack (11 March 2021). "Hedge fund boss Crispin Odey acquitted of indecent assault". The Telegraph. ISSN 0307-1235. Retrieved 12 March 2021.
  38. ^ Media, P. A. (28 September 2020). "Hedge fund boss Crispin Odey in court on indecent assault charge". The Guardian. ISSN 0261-3077. Retrieved 29 September 2020.
  39. ^ "Crispin Odey indecent assault case: Hedge fund boss cleared". BBC News. 11 March 2021. Retrieved 12 March 2021.
  40. ^ "Hedge fund boss Crispin Odey not guilty of indecent assault, judge rules". The Guardian. 11 March 2021. Retrieved 11 March 2021.
  41. ^ "Odey Asset Management investigated as sexual harassment claims emerge". BBC News. Retrieved 9 June 2023.
  42. ^ Neate, Rupert (8 June 2023). "Morgan Stanley cuts ties with Crispin Odey after sexual assault allegations". The Guardian.
  43. ^ a b Neate, Rupert (8 June 2023). "Financial watchdog investigating Crispin Odey after sexual assault allegations". The Guardian. ISSN 0261-3077. Retrieved 9 June 2023.
  44. ^ Agnew, Harriet; Marriage, Madison; Cundy, Antonia; Noonan, Laura (8 June 2023). "FCA investigates Odey Asset Management". Financial Times. Retrieved 9 June 2023.
  45. ^ Mackenzie, Nell; Ridley, Kirstin; Keidan, Maiya; Mandl, Carolina (9 June 2023). "Odey's prime brokers review ties after misconduct allegations - sources". Reuters. Retrieved 9 June 2023.
  46. ^ Agnew, Harriet; Smith, Robert; Dunkley, Emma; Noonan, Laura (13 June 2023). "JPMorgan cuts ties with Odey Asset Management". Financial Times. Retrieved 14 June 2023.
  47. ^ Mandl, Carolina; Mackenzie, Nell (10 June 2023). "Crispin Odey to leave hedge fund he founded after assault allegations". Reuters. Retrieved 10 June 2023.
  48. ^ Neate, Rupert (12 June 2023). "Crispin Odey's name to be removed from hedge fund he founded". The Guardian. ISSN 0261-3077. Retrieved 14 June 2023.
  49. ^ Clark, Meredith (22 September 2023). "Who's who in the Murdoch family". The Independent. Retrieved 18 September 2024.
  50. ^ Wolff, Michael (31 October 2008). "The Secrets of His Succession". Vanity Fair. Archived from the original on 13 September 2024. Retrieved 12 September 2016.
  51. ^ "The Tatler List: Crispin Odey". Tatler. 30 May 2012. Archived from the original on 4 June 2012.
  52. ^ "Rich List 2019: profiles 152–200, featuring JTimes K Rowling, Philip Green and Paul McCartney". The Times. 12 May 2019. ISSN 0140-0460. Retrieved 14 August 2019.
  53. ^ Stupples, Benjamin; Kumar, Nishant (29 June 2023). "Crispin Odey's £561 Million Fortune Mostly Trapped Out of Reach". Bloomberg News.
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