The newly formed European hedge fund manager, RAB Asset Management, has already closed one of its sh...
The newly formed European hedge fund manager, RAB Asset Management, has already closed one of its share classes after just a few months, writes Michèle Harrison.
The RAB Europe Fund Limited C share class closed to new investments at the end of February, having risen 50% since inception on 3 November 1999.
Class C shares had a one-year lock-up and 1% management fees and 15% incentive fees.
Class A and B shares remain open to new investments. They do not have a lock-in period but their charges are higher with 1.5% management fees and 20% incentive fees.
Class A is euro-denominated and class B is US dollar-denominated.
RAB Asset Management was founded last year by Michael Alen-Buckley and Philips Richards to manage European equities on a long/short basis. The company now manages a total of $55m which is expected to grow to $80m at the end of February.
The fund invests in European equities, although it can hold as much as 20% outside the region. The tendency is to try and lock in profits as soon as possible and consequently turnover is very high.
To protect the downside, the managers have a rule that once a position loses them 5% they will cut the holding in half.
If it continues to lose them money, they will eliminate it completely once it reaches a 10% loss.
Consistency and compliance vs. slower reaction time
Search for replacement to begin imminently
60+ £300bn ISA savings
Has technology moved on?
Total funds on list rise from 26 to 58