RAB Special Situations Up (!) 20%

Mar 29 2012 | 11:57am ET

RAB Capital co-founder Philip Richards may be authoring one of the most unlikely comebacks in hedge fund history.

RAB's embattled flagship, Special Situations, is up more than 20% this year. The fund lost more than 70% in 2008 and has posted a series of disappointing years since, rising 4.6% in 2009 and losing 7.6% in 2010. Last year, RAB said it would transform Special Situations into a natural resources-focused fund after investors moved to redeem 79% of its assets, once as high as US$2 billion.

That new focus seems to be paying off: Special Situations rose 12% last month and is up 20.9% on the year. It's doing so well, it has cashed in some of its positions, Reuters reports.

"During the month the fund took the opportunity to capitalize on the strong markets in order to realize cash," Richards wrote to investors in a Special Situations feeder fund.

The turnaround for Special Situations comes as RAB seeks to rebuild its fortunes as a firm and recover from its Special Situations-inflicted wounds. In January, CEO Charles Kirwan-Taylor left the firm, with co-founder Michael Alen-Buckley taking the helm at the delisted company. Alen-Buckley said at the time that the US$350 million firm had more than £40 million in cash and reserves and would seek to rebound as a private company.


In Depth

FINtech Focus: Fundbase Aims To Revolutionize Access To Hedge Funds

Jan 23 2015 | 11:03am ET

Global investment in financial technology—also known as fintech—is booming....

Lifestyle

Looking For A Hedge Fund Manager? Try Davos

Jan 28 2015 | 8:48am ET

Davos, Switzerland seems to have become the hedge fund capital of the world—at...

Guest Contributor

From Switzerland With Love: Some Hard Truths About Central Banks And Risk

Jan 23 2015 | 7:54am ET

In the wake of the Swiss National Bank uncoupling the country’s currency from...

 

Editor's Note