Odey Funds: Bleeding Assets Remain Open to Retail Investors
Odey Asset Management LLP, a London-based hedge fund, has been losing money for years. Despite the losses, the firm has kept its funds open to retail investors, allowing them to pour money into the funds even as the losses mount.
Odey’s Struggles
Odey Asset Management has been struggling for some time. The firm has seen its assets under management drop from a peak of $14 billion in 2015 to just $3.5 billion in June of 2023. The firm has also seen its flagship fund, the Odey European Fund, lose money for the past five years.
The losses have been so severe that the firm has had to close some of its funds, including the Odey European Fund, the Odey European Absolute Return Fund, and the Odey European Long/Short Fund.
Retail Investors Remain
Despite the losses, Odey Asset Management has kept its funds open to retail investors. The firm has continued to accept new investments from retail investors, even as the losses mount.
The firm has also continued to offer its funds to retail investors through a variety of platforms, including Hargreaves Lansdown, Interactive Investor, and AJ Bell.
Risk of Loss
The decision to keep the funds open to retail investors has raised some eyebrows. Critics have argued that retail investors may not be aware of the risks associated with investing in a hedge fund, and that they may not be prepared for the potential losses.
The firm has responded to these criticisms by noting that it has always been clear about the risks associated with investing in a hedge fund. The firm also notes that it has always been clear about the potential for losses, and that it has taken steps to ensure that retail investors are aware of the risks.
Regulatory Scrutiny
The decision to keep the funds open to retail investors has also drawn the attention of regulators. The Financial Conduct Authority (FCA) has launched an investigation into the firm’s practices, and is looking into whether the firm has been adequately disclosing the risks associated with investing in a hedge fund.
The FCA is also looking into whether the firm has been adequately managing the risks associated with investing in a hedge fund. The regulator is also looking into whether the firm has been adequately monitoring the performance of its funds.
Odey’s Response
Odey Asset Management has responded to the FCA’s investigation by noting that it has always been clear about the risks associated with investing in a hedge fund. The firm also notes that it has taken steps to ensure that retail investors are aware of the risks.
The firm has also noted that it has been monitoring the performance of its funds and taking steps to mitigate the risks associated with investing in a hedge fund.
Conclusion
Odey Asset Management has been struggling for some time, and has seen its assets under management drop significantly. Despite the losses, the firm has kept its funds open to retail investors, allowing them to pour money into the funds even as the losses mount. The decision to keep the funds open to retail investors has drawn the attention of regulators, who are looking into whether the firm has been adequately disclosing the risks associated with investing in a hedge fund. Odey Asset Management has responded to the FCA’s investigation by noting that it has always been clear about the risks associated with investing in a hedge fund, and that it has taken steps to ensure that retail investors are aware of the risks.