Tuesday, 21 October 2014
Last updated 44 sec ago
Aug 21 2008 | 11:17am ET
RAB Capital is mulling a share buyback in an effort to cut the discount on its largest hedge fund.
The firm is considering a repurchase of ordinary shares which it would either hold or cancel, it said in a statement. US$1.5 billion RAB Special Situations, which is listed in London, trades at a discount of roughly 37% to net asset value.
The fund has been battered by its investments in small natural resource companies and in U.K. mortgage lender Northern Rock, which was nationalized in February. The fund is down by about one-third of its value—mostly due to the natural resource companies holdings—but shares of RAB Special Situations have fallen by 51%.
In the statement, RAB called its 8.18% stake in Northern Rock “regrettable,” but argued that the collapse in commodity prices is an overreaction.
“We believe this bearishness is hugely overdone,” RAB CEO Philip Richards, who manages the Special Situations fund, said. “In recent years we have made returns more quickly than this, and we believe that we will be able to do so again as the world runs short of natural resources.”
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...