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

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

Concerned About Your HFT Exposure? Hedge It!

Mar 26 2015 | 1:06pm ET

High-frequency trading has been a persistent storyline for several years. The trading...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note