Monday, 29 August 2016
Last updated 2 days ago
Nov 1 2007 | 10:21am ET
RAB Capital is the latest hedge fund seeking to strike it rich underground. The London-based firm is prepping a mining and natural resources fund—managed by CEO Philip Richards—for launch later this month.
RAB Capital this month is launching the RAB Global Mining and Resources Fund2, a mid-and-large cap long/short fund, managed by chief executive Philip Richards.
RAB Global Mining and Resources Fund2 will allocate at least 90% of its portfolio to companies with a market capitalization of over $1 billion, with 50% invested in companies with a market capitalisation of over $10 billion. Its principal focus will be on the metals and mining sectors, but the fund’s mandate also includes other types of natural resources companies and it will have the ability to hedge through futures and physical commodities.
Richards, who currently manages the RAB Special Situations Fund, will be assisted by new hire Tiffany Essex, who was previously a member of the mining team at Cazenove.
The Fund will target returns of over 20% per annum–less than the 30% to 50% targeted by RAB Special Situations but with lower volatility. RAB Global Mining and Resources is expected to go live on Nov. 21.
“Structural changes in the world economy, in particular the relentless commodities demand from China, and worldwide urbanization, are driving the current commodities super-cycle, and so far the supply response has been inadequate,” said RAB Executive Chairman Michael Alen-Buckley. “Philip Richards and his team will focus on high conviction long/short positions in the large capitalization mining names to extract alpha through analysis of fundamental, technical and valuation factors.”