The risk profile of Crispin Odey's flagship hedge fund has been lowered by Freddie Neave after he took over its management in June following allegations of sexual misconduct against the Odey Asset Management founder, according to a report by Reuters.

The risk profile of Crispin Odey's flagship hedge fund has been lowered by Freddie Neave after he took over its management in June following allegations of sexual misconduct against the Odey Asset Management (OAM) founder, according to a report by Reuters.

The report cites an investor letter seen by Reuters as confirming that since replacing Odey, who denies the misconduct allegations, Neave has reduced the size of Odey European Inc fund's investments in stocks, bonds and, in June, sold out of its gold futures. He has also reportedly increased the fund's liquidity.

According to the letter, OAM is planning to send out further correspondence about the restructuring of the fund, which is down 13,6% so far this year and has shrunk in size by €28m.