LONDON, June 13 (Reuters) – Odey Asset Management (OAM) is closing one fund and proscribing dollars clients can pull from yet another, two investor letters confirmed, just as the hedge fund was scrambling on Tuesday to keep its prime brokers from ending essential relationships with the firm.

These developments follow allegations of sexual misconduct by its founder, Crispin Odey, documented by the Economic Moments and Tortoise Media very last week. Odey denies the allegations.

Odey Asset Management has shut its Odey Swan Fund and is restricting the funds consumers can pull from its Brook Developed Marketplaces Fund, according to trader letters observed by Reuters.

Also on Tuesday, the FT noted that JPMorgan , one particular of a few key brokerages that supply very important leverage for the hedge fund, experienced served observe on its services agreements, chopping ties with OAM. A resource acquainted with the matter explained to Reuters on Saturday that Goldman Sachs (GS.N) had also served recognize on its provider agreements with OAM funds.

JPMorgan and Goldman Sachs declined to comment. Morgan Stanley also declined to comment on Tuesday as to irrespective of whether it experienced resolved the same.

In the letters, the two dated June 12, and viewed by Reuters on Tuesday, the OAM board said it took the decision to near the Odey Swan Fund and gate the Brook Created Marketplaces Fund following it faced “redemption requests in excessive of ten for each cent of the internet asset price,” prompting the firm to restrict a lot more withdrawals.

The board of Odey Asset Management also decided to suspend the situation, conversion and redemption of Swan Fund shares in get to “efficiently handle the redemptions and in the ideal interests of Shareholders,” the trader letter showed.

An OAM spokesperson declined to remark but confirmed the letter about the Brook Made Markets Fund and was not instantly accessible to reply to a request about the closure of the Swan Fund. OAM said on Monday it wasn’t taking into consideration imposing exit restrictions on any of its funds.

Crispin Odey has denied the allegations of misconduct, which ended up jointly claimed by the Money Occasions and Tortoise on Thursday.

He did not react when contacted by Reuters on Tuesday about possibly the Brook or Swan fund.

It is the obligation of a fund’s board to defend other retail clients from the falling price of a fund if there is a rush of trader exits.
Brook Produced Markets Fund is open up to retail buyers and had about $216 million, as of the end of February, the most current info from Morningstar confirmed.

OAM about the weekend sought to length by itself from Crispin Odey, expressing the financier would be leaving the organization.

In a letter to traders signed by the firm’s associates and found by Reuters the agency established out a succession approach, which include naming replacement supervisors for crucial resources, as the agency sought to close “individual and financial involvement” with Crispin Odey.

OAM had $4.8 billion in assets under management as of September 2022.

Reporting by Nell Mackenzie Editing by Dhara Ranasinghe, Elisa Martinuzzi and Susan Fenton

Our Expectations: The Thomson Reuters Trust Rules.