RAB Capital's recovery apparently does not extend to Asia. The troubled London-based hedge fund, which enjoyed a strong year from two of its funds, has reduced its Hong Kong office—its only international office—to a rump.
The firm bade farewell to four members of the five-person team it hired from D.B. Zwirn & Co. in 2009 in December, Bloomberg News reports. The cuts leave just four employees in Hong Kong, led by RAB Asia CEO David Seex.
But Seex now oversees a region where RAB has no dedicated funds and no plans to launch one. The firm shuttered its last Asia hedge fund, run by its Pi investment team, late last year, and cancelled plans to have the former Zwirn team launch a distressed fund.
"We have taken action to reduce our cost base in Asia," the firm said. "We're now focused on expanding our Asian investor base in our core products, several of which delivered very strong returns in 2010."
RAB is retrenching in Asia as other funds are returning to the region after cutting back during the financial crisis.