RAB Has First Half To Forget

Jul 30 2008 | 12:46pm ET

This year is shaping up as nothing short of a disaster for RAB Capital.

The London-based hedge fund reported a whole raft of bad news for the first half, with profit, assets under management, performance and performance fees all down by double digits. And the firm says things are looking no better in the second half.

“We are not expecting any respite before the end of the year,” Michael Alen-Buckley, executive chairman, said. “The first half of 2008 has been a challenging environment and we have not escaped from the falls across global securities markets.”

And how. RAB’s US$1.4 billion flagship Special Situations Fund was off by 23% in the first half, and is down by one-third through July 24. All told, two-thirds of RAB’s funds are smaller than they started the year. Four funds have fallen by more than 40%, including the RAB European Loan Fund, which has shrunk by more than half.

The poor performance was reflected in a 12% decline in assets under management to US$5.9 billion.

Net income fell 44% to £8.7 million (US$17.2 million), as performance fees fell by more than 60% to £8.3 million (US$16.4 million). Management fees, however, rose, despite the fall in assets, 11% to £26.8 million (US$53 million).


In Depth

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Lifestyle

Einhorns Busts At WSOP, Finishes In 173rd

Jul 15 2014 | 10:48am ET

Greenlight Capital founder David Einhorn’s World Series of Poker won’t end at...

Guest Contributor

The Truth About Track Record Portability

Jul 24 2014 | 5:55am ET

The number of private funds converting to mutual funds has increased significantly...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note