RAB Commodities Fund Slides 20% In Q2

Jul 15 2013 | 9:47am ET

RAB Capital's Special Situations fund lost 11.3% in June, leaving it down almost 20% in Q2.

The fund was recast as a natural resources-focused fund in 2011, after several years of poor—some would say disastrous—performance (it lost over 70% of its assets in 2008, returned 4.6% in 2009 and lost 7.6% in 2010).

The firm's assets under management have also diminished—from several billion at its high-water mark to a few hundred million today.

Michael Alen-Buckley, who founded the firm with Philip Richards in 1999, told The Independent newspaper: "China has been slowing down and Brazil has had problems, which hasn't helped. Gold has fallen from $1,700 to $1,200, which hasn't helped. We are in a big bear market for commodities—all the commodity funds are suffering redemptions. It is an unloved sector in a bear cycle."

The Special Situations fund is over 80% invested in oil and gas, base metals and gold.

Richards told the paper, "While momentum could see the sell-off intensify in the near term, the pull-back should provide attractive entry points for risk assets in a number of commodities, especially crude oil, copper and gold."

In Depth

Q&A: Biotech Investing with Crossover Fund RA Capital

Sep 15 2015 | 5:40pm ET

Boston-based RA Capital Management is an intriguing mix of sophisticated life sciences...


Citadel Supports Manhattan Real Estate With Record Deal

Sep 16 2015 | 3:04pm ET

Never count hedge funds out of a big property deal. The Manhattan real estate market...

Guest Contributor

Hedge Fund Marketing To Independent RIA Firms

Sep 30 2015 | 1:56pm ET

In this contributed article, Bruce Frumerman of Frumerman & Nemeth Inc. explains...