Monday, 20 October 2014
Last updated 3 hours ago
Feb 24 2010 | 3:38am ET
In a further sign of the troubles plaguing its flagship hedge fund, RAB Capital is taking the unprecedented step of putting the whole fund on the secondary market.
The London-based hedge fund will allow all investors in its US$550 million Special Situations Fund to sell their stakes in a Dutch auction next month. While clients of the firm approved a new three-year lockup in September 2008 in exchange for fee reductions, the fund’s failure to partake in last year’s hedge fund rally led to renewed calls for liquidity.
Special Situations, which once managed as much as US$2 billion, lost 70% in 2008. But while the average hedge fund returned approximately 20% last year, Special Situations rose just 4.6%. In order to recoup all of its losses from 2007 and 2008, the fund, which is up 3.33% this year, needs to rise another 230%.
The Dutch auction, organized by Credit Suisse, will open on March 8, the Financial Times reports. It is unclear how many investors will partake in the sale; investments in the fund are likely to go at a steep discount.
RAB has taken several steps to improve the performance of Special Situations. Former RAB CEO Philip Richards stepped down from the firm’s top post to focus on the hedge fund. Philips has also sought to modify the fund’s strategy, so far to no avail.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...