The ailing fund manager Odey Asset Management has sold the bulk of its stake in Pendragon, the London-listed car dealer, as part of an intensifying firesale of assets by the firm.

Sky News has learnt that Odey offloaded over 5% of Pendragon on Thursday morning in a trade executed by Peel Hunt, the investment bank.

The buyers were a combination of new and existing shareholders in the car dealer, according to City sources.

The sell-off, which leaves Odey holding a residual stake of about 4%, came on the same day that the once-influential hedge fund said it would break itself up in the wake of a litany of sexual assault allegations against its founder, Crispin Odey.

The Financial Times has published a detailed series of testimonies from women who allege that Mr Odey abused them over a protracted period, raising questions about the response of his colleagues and of the City regulator.

In a statement on Thursday, Odey said it had “become clear that some investment management activities of the partnership are affected by recent events”.

“Given that, the firm is now in advanced discussions for rehousing funds and transferring certain fund management activities and individuals to other asset managers.

“Any sale or rehousing is considered subject of course to any relevant regulatory approvals and due diligence, with a view to an orderly transition of any assets and investors.”

Be the first to get Breaking News

Install the Sky News app for free

Read more:
National Grid to keep blackout prevention scheme for coming winter
Premier League leads European financial dominance but Championship clubs ‘living beyond their means’

In the past week, Odey has liquidated a number of its positions in public companies, including the electrical goods retailer AO, and Plus500, the online trading services provider.

Mike Ashley’s Frasers Group was the acquirer of Odey’s near-20% stake in AO, Sky News revealed last weekend.

Odey, Pendragon and Peel Hunt all declined to comment.

Related posts:

Heathrow pleads for US to ease travel restrictions as passenger numbers creep up HGV driver crisis: ‘Things are not visibly getting better at this stage’ Morrisons shareholders approve £7bn takeover after bidding war Homeless accommodation provider targets £150m fundraising with IPSX listing British Gas chief to waive £1.1m bonus as households face bill surge SWIFT sanctions could hurt Russia – but pain would also be felt by the West Tax rises or spending cuts needed to avoid ‘unsustainable’ public debt, watchdog warns British Airways check-in staff strike suspended as company makes improved pay offer, union says UK economy continues to contract, energy efficiency and powering electric vehicles Brexit, public borrowing and a post-pandemic London City watchdog on alert for failure of fintech Railsr Shop price inflation reaches record high, UK house prices fall and young people urged to consider farming careers