Thursday, 30 October 2014
Last updated 23 min ago
Mar 16 2011 | 1:09pm ET
If RAB Capital has indeed turned the corner, you'd certainly have no idea from its 2010 results.
The troubled London-based hedge fund, which has suffered billions in outflows over the past two years after its flagship fund lost 70% during the financial crisis, said its annual loss tripled to £20.2 million last year. The firm had lost £6.9 million in 2009.
The ocean of red ink can be attributed to RAB's continued struggle to hold on to investors. The firm's assets, which had seen an uptick at the beginning of last year, fell from US$1.35 billion to US$1.06 billion over the course of the year. Just three years ago, the firm managed as much as US$7 billion.
And the firm is in danger of losing even more assets as its flagship Special Situations fund, which lost another 7.6% last year, will see its lock-up end later this year.
"Our results for the year are not satisfactory," CEO Charles Kirwan-Taylor said in summary.
Kirwan-Taylor was able to point to "modest" inflows into some funds. Indeed, several RAB funds enjoyed banner years in 2010, with its Energy fund named one of the top-performing hedge funds of the year by HSBC with a 46.6% return.
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…
David and James Hamman launched their fundamental Livestock and Grains Program in March of 2010 but it really was decades in the making.