Odey takes on UK wealth managers

Hedge fund manager Crispin Odey is aiming to capture a slice of the increasingly targeted mass affluent wealth market with a new UK venture he claims will mark the end to the “raw deal” served by most wealth managers.

Odey set up Odey Asset Management in 1991, characterized by active management and high conviction strategy, after a stint at Barings Bank. He has often courted controversy with his remarks about the industry or investment strategy.

For the new business, Odey Wealth Management, he has hired respected managers Tim Bond from Barclays Capital, and Peter Martin from Rothschild to offer private clients exceptional investment research capability.

Commenting on the launch, Odey said in a press release: “I’m calling an end to the raw deal served up by many providers in the wealth management industry. The big bank model died in 2008. Too many so-called professional investors embrace mediocrity by seeking consensus views that starve private clients of performance whilst lining the managers’ pockets with high and often hidden charges.

“In addition, the fund of funds approach to wealth management has been outed as expensive, opaque and sub-optimal. The platform model is similarly doomed. Private clients want to buy a fund manager’s judgement, not an endless choice of ways to lose money.”

“We abhor the lazy thinking of index relative returns. Our proposition will attract those private investors seeking long term wealth enhancement and long term relationships powered by a leading fund manager’s conviction. Investment styles need to adapt as opportunities change. Living in investment denial must be avoided – if an investment is not working, we won’t wait until it does.”

The new firm will offer sterling-based, bespoke investing across a broad range of asset classes with a long-only focus. At launch the portfolios will have a heavy bias toward equity exposure (searching for value in developed economies and growth in developing territories) and a low weighting in bonds. The charging structure will be a flat 1.0%.

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