Hendry and team resign from Odey

Feras Al-Chalabi takes over the management of his onshore Odey Continental European fund. Crispin Odey, chief investment officer of Odey Asset Management, is now managing the offshore Odey Pan European fund.

Hendry (pictured) says the split is amicable, although he admits there was a disagreement with Odey over the future strategic direction of the asset manager: “Crispin believes the way to build the business is by winning more segregated accounts with an absolute return mandate. I can see the reason for this given that Crispin has built the business up from $800m [£420m] to $3.5bn and created an institutional infrastructure. But it is not what I want to do.

“Crispin also wanted all the long-only funds to be managed in the same way. But I wanted to run the European funds in my own style and I had some slightly different stock ideas, which I thought offered diversification. But there was no crisis or falling out between us.”

Hendry says he is in discussions with Odey about buying the E270m (£185.7m) Eclectica hedge fund to take to his new business, which he hopes also to call Eclectica: “It will take four to six months to get the business established and regulated. In the meantime, I will continue to manage Eclectica as an employee of Odey.”

At his new firm, Hendry plans to launch long-only European funds, but not before the end of the year: “It is not fair on Odey to launch long-only funds earlier than this. I am desperate to recruit a Japanese manager for the new business, but that will be done by Simon Batten.”

Odey says: “Al-Chalabi joined Odey in 1999 as a European analyst as well as an assistant portfolio manager on Odey’s Japanese funds. In October 2002, he took over the management of the European segregated funds and has been due to take over managing the Continental European fund for some time, delayed only by the launch of the Odey European Allegra fund in November last year.”