Freddie Neave, the fund manager who took over Crispin Odey’s flagship fund in June, has reportedly reduced the risk profile of the Odey European Inc fund amidst a restructuring effort. The move comes after accusations of sexual assault or harassment were leveled against Odey, who was subsequently ousted from Odey Asset Management (OAM) which he founded in 1991. Neave has taken steps to lower the fund’s risk by decreasing investments in stocks, bonds, and gold futures. He has also increased the fund’s liquidity to bolster its cash reserves.
Performance-wise, the Odey European Inc fund has experienced a 13.6% drop this year, and its size has also decreased by €28 million ($31 million) since February. While the fund saw a boost from its government bond investments, its stocks portfolio, particularly short positions on U.S. tech stocks like Tesla and United Rentals, and long investments on companies like Leopalace, Learning Technologies, and Jadestone Energy, contributed to its negative performance.
To restructure the fund, OAM plans to send further correspondence detailing the changes. However, the company declined to comment on the matter. For now, the Odey European Inc fund maintains some exposure to commodities through long positions related to crude and palm oil company stocks.
Overall, Neave’s efforts to lower the fund’s risk profile aim to address concerns of potential investor exodus following the allegations against Odey. Neave’s adjustments in the fund’s investment strategy and increased liquidity will likely contribute to a more cautious and stable investment approach. The ongoing restructuring will provide investors with clearer insights into the fund’s future direction.
