The rapid restructuring of Odey Asset Management, following allegations in FTAdviser's sister publication the Financial Times about founder Crispin Odey's behaviour, has shone a spotlight on one of the more traditional firms in the City.
Odey’s lifestyle seemed to represent a different era, with aristocratic clients and senior staff sometimes departing early on Thursday for a shooting weekend.
Much of the Odey Asset Management operation was based in Mayfair, an area more synonymous with hedge funds than the sort of investment funds that typically populate the portfolios of FTAdviser readers and their clients.
But as the company, from which Crispin Odey stepped away as co-chief executive in November 2020 as he prepared to stand trial on an allegation of indecent assault, grew in recent years, it expanded into a range of funds that were branded under the name Brook Asset Management (named for the street in Mayfair from where the staff work).
It is important to emphasise that Crispin Odey was found not guilty of that criminal charge and that he denies the accusations made against him in the Financial Times.
However, the firm is now looking to sell off some of its funds to other parties, as well as other fund management activities.
The creation of the Brook Asset Management subsidiary occurred around the time that Odey faced criminal prosecution.
None of the funds branded as Brook were personally managed by Crispin Odey, with Brook Asset Management being a subsidiary of the main Odey business. Companies House records state he is the “ultimate controlling party” for Odey Holdings.
Since those accusations emerged, a host of firms and wealth managers have withdrawn their investments from the funds branded either Odey or Brook.
Among the firms to withdraw capital at the time of writing are Schroders and Columbia Threadneedle while the Evelyn Partners international model portfolios (that is the ones not run for UK-based advisers) continue to own some Brook Asset Management funds.
Columbia Threadneedle sold their exposure to the Brook Continential European fund last week.
Numbers crunched
An analysis by FTAdviser of data provided by Morningstar Direct indicates that Brook Asset Management hadtotal assets under management of just over £3bn at the end of May 2023.
This is spread across 17 funds; of those, the Swan fund has already been closed down following the allegations, while others have banned redemptions
That firm’s most recent set of accounts, which cover the period to the end of November 2021, show a pre-tax profit of £1.1mn on a turnover of £59.4mn, compared with a loss the previous year of £27mn on a turnover of £28mn.
Brook Asset Management paid out total dividends of £3.1mn in the calendar year 2021, having not paid any dividend in the prior year.
An analysis by FTAdviser, using data compiled by Morningstar Direct, indicates that Brook Asset Management had assets under management of just over £3bn in funds that can be invested in by UK advisers and wealth managers.
