Hargreaves Lansdown has warned Crispin Odey that he is “biting the hand that feeds him” by criticising the platform industry.
The company, which operates the Vantage platform, says Odey should “be careful what he says”, as platforms are the main way that his retail funds gather assets.
On Monday, fund management star Odey unveiled plans to launch a wealth management company which will charge flat fees of 1 per cent for clients. He slammed the wealth management industry as “bloated” and says the platform model is “doomed”.
He says: “Private clients want to buy a fund manager’s judgement, not an endless choice of ways to lose money.”
But Hargreaves Lansdown senior analyst Meera Patel says: “We are not trying to pitch funds to help people lose money as this is not helpful to our business. He is on our platform and we are getting him business. He is basically biting the hand that feeds him.”
Patel says platforms such as HL’s Vantage provide research, including the firm’s Wealth 150 list of recommended funds, to help investors.
Odey partner Orlando Montagu says: “The point we are making is simply that performance is everything. All we are saying is that all of us are on notice that we have to get performance for clients.”