The newly formed European hedge fund manager, RAB Asset Management, has already closed one of its sha...
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 funds are managed by Philip Richards and Schehrezade Sadeque. Richards is managing director and chief investment officer and Sadeque is senior portfolio manager.
Michael Alen-Buckley, managing director at RAB, explains his firm's investment philosophy: "Our objective is to combine the disciplines of fundamental investment analysis and market trading.
"We run a very balanced portfolio that consists of between 120% and 130% longs and 100% and 130% shorts. And our net exposure on average has been less than 20%.
"The approach is very active and based on a combination of fundamental analysis, technical analysis and value analysis. When we take on a position, whether it be long or short, we expect the stock to move in our favour by at least 20% over the next three months."
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.
RAB Europe Fund is a Cayman Island-registered open-ended fund, listed on the Dublin Stock Exchange. In addition, the firm also manages a limited partnership, valued at $12m.
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