rab's growth strategy is marked with eight hedge funds planned for launch and staff expansion to support them
Rab Capital Management has plans for major expansion over the course of the year beginning with a spate of hedge fund launches this month.
Recently hired Arild Eide, who joined from Morgan Stanley in November, will manage a long/short US equities fund. Nick Reid from Gartmore, who has experience of running long-only and long/short Japan funds, and Robin Cosgrove, who joined from Dresdner Kleinwort Benson in Tokyo in January, will run a long/short Japanese equities fund. Gavin Wilson, who joined last month from Canaccord Capital, Canada, will be in charge of an energy fund.
The Japan and energy funds are both set to launch on 1 June with a minimum of $50m in assets under management, with the US launch, which will have CSFB as its prime broker, expected close to the same date, according to Rab chairman Michael Alen-Buckley.
Target returns on the Japan and US funds will be 10% to 15% over time with volatility of between 8% and 10%. The energy fund will operate with a higher return and volatility profile.
The Japan fund, which will have Goldman Sachs as its prime broker, will soft close with $350m in assets and hard close with $500m.
According to Alen-Buckley: "This is based on the fund being large cap-biased, which is good for liquidity."
Rab is also in late-stage talks with two other managers to join the firm. They are likely to to run a merger arbitrage and event-driven fund, and an emerging markets fund focusing on Asia, said Alen-Buckley.
"Those are not the limits to our interest though," he added. "We are trying to find very talented people and to give them the tools to operate."
Attracting good managers has become easier since Rab floated earlier this year, according to Alen-Buckley, by using capital in the company that now has a market value.
The firm has plans to expand by the end of the year its current range of 12 hedge funds to 20. It also intends to increase staff numbers from 30 at present to 55.
Meanwhile, Lazard Asset Management is also reportedly rebuilding its hedge fund team and planning a European equity hedge fund launch in May to be managed by Robert Rowland.
Rowland was brought in by the firm last year to rebuild its hedge fund business following the departure of William von Mueffling, whose exit led both to redemptions and loss of staff. The firm now has around $72bn assets.
Improving portfolio diversification
Hanging on the telephone
German recession concerns