RAB Posts Huge Loss As Assets Continue To Drop

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.


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