Thursday, 7 May 2015
Last updated 13 hours ago
Sep 17 2010 | 1:22am ET
RAB Capital issued an earnings warning after the close of trading, and said that it would cut staff to reduce its costs.
The trouble London-based hedge fund said that its full-year loss would be larger than expected. RAB blamed a big drop in assets under management—the firm ended August with just $1.05 billion, down from $1.26 billion at the end of June and $1.35 billion at the beginning of the year—due to poor performance and investor redemptions.
At its peak two years ago, RAB managed more than $7 billion.
The warning comes just weeks after CEO Stephen Couttie, who took over from firm founder Philip Richards two years ago, abruptly resigned. He was replaced by chief investment officer Charles Kirwan-Taylor.
Richards stepped down as CEO two years ago to focus on running the firm’s flagship Special Situations Fund. But that fund’s troubles have continued, and contributed to the warning: It is down 15% over the past two months, and is down 11.2% on the year. In addition, RAB’s fund of funds lost a major institutional investor.
Kirwan-Taylor said RAB would cut staff to reflect its lower asset base.
“We are in a position with the cost base that is untenable for the assets we have,” he told Dow Jones Newswires. “Now we have to reduce those costs to a more appropriate level.”
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…