Flagship Odey fund slimmed down by manager Neave, exits commodity futures

LONDON, Aug 2 (Reuters) - Freddie Neave has lowered the risk profile of Crispin Odey's flagship fund, which he took over the management of in June, according to an investor letter seen by Reuters on Wednesday.

Crispin Odey, 64, was ousted in June from Odey Asset Management (OAM), which he founded in 1991, after the Financial Times and Tortoise Media reported that 13 women had alleged that he had sexually assaulted or harassed them.

Odey has denied the allegations.

OAM, which declined to comment, will send out further correspondence about how the Odey European Inc fund will be restructured, the letter said.

OAM reorganised many of its funds in June and Neave took over the flagship Odey European Inc fund, amid fears of an investor exodus following the allegations.

Since then, Neave has reduced the size of the hedge fund's investments in stocks, bonds and, in June, sold out of its gold futures. He has also increased the fund's liquidity, or the amount of cash in hand it boasts, he said in the letter.

Performance for the fund is down 13.6% this year and, since February, it has shrunk in size by 28 million euros ($31 million), from 284 million euros.

While its government bond book added a 3% boost, the long and short side of its stocks portfolio had negative results. The fund closed out its direct exposure to gold futures, the letter said.

Short positions, which are a bet on a share price falling, on U.S. tech stocks like Tesla and United Rentals , as well as long investments on rental company Leopalace , Learning Technologies and Jadestone Energy added to the negative performance.

Leopalace declined to comment. The other companies did not immediately respond to requests for comment.

Odey European Inc has kept some exposure to commodities through long positions related to the crude and palm oil company stocks, the letter said. ($1 = 0.9103 euros) (Reporting by Nell Mackenzie; Editing by Amanda Cooper and Alexander Smith)