RAB Profit Hit By Big Decline In Flagship’s Performance

Dec 11 2007 | 9:23am ET

A rough November is putting a crimp in hedge fund giant RAB Capital’s bottom line.The firm yesterday said pre-tax earnings for 2007 will be flat, after its flagship hedge fund fell 10% last month, cutting into its performance fee income.

London-based RAB said in a statement to the London Stock Exchange—on which its shares are traded—that its Special Situations Fund was hurt by investments in smaller British companies. RAB also owns more than 6% of troubled U.K. bank Northern Rock.

RAB earned £50.3 million (US$102.5 million) last year, and had been expected to post a £53.1 million (US$108.2 million) pretax profit this year.


In Depth

Debunking Conventional Investment Wisdom

Feb 8 2017 | 3:22pm ET

Due diligence in the hedge fund world has long involved some combination of the...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Future of Private Equity: New Opportunities, New Challenges

Feb 3 2017 | 6:41pm ET

The private equity industry’s astonishing rebound since the financial crisis has...

 

From the current issue of