Odey Asset Management has stopped investor withdrawals from two funds following sexual misconduct allegations against the company's founder, Crispin Odey.
The company gated the Odey Swan fund ahead of its planned closure, while Odey subsidiary Brook Asset Management did the same with its Developed Markets fund.
Clients were told in a letter on Monday that withdrawals from the Brook fund were being suspended due to a higher volume of redemption requests, which it said had exceeded 10% of the fund’s net asset value.
"The board believes that applying the redemption gate is in the best interests of all shareholders and will facilitate the management of the redemption requests received in respect of the sub-fund," Brook's board said in the letter.
Last week the Financial Times reported that Odey was facing allegations of sexual assault or harassment from 13 women, which he denies.
The Financial Conduct Authority (FCA) said last week that it is expanding its investigation into the firm.
According to the last numbers from the company, the Swan fund holds €117mln in assets under management while the AUM of the Brook Developed Markets is nearer €205mln.