RAB Capital has shut down its global macro fund and is launching an emerging market debt fund, a Eur...
RAB Capital has shut down its global macro fund and is launching an emerging market debt fund, a European loan fund and a commodities trading fund.
The macro fund was shut because of poor performance and redemptions in early March. Mark Papiolek, a spokesman for RAB, said: "In terms of performance, the fund has been down in 14 of the 15 months to December 2004, and the two managers, Suresh Wadhwani and Peter Chen, have left."
The fund also suffered major redemptions. According to Papiolek, in December 2003 it had £122m in assets under management and at the end of 2004 was down to £70m, a loss of £52m. Papiolek said: "Most of the rest of the money would have gone just after year end."
RAB's unaudited statements for 2004 also reveal that the RAB Europe fund has had significant redemptions. At 31 December 2003, the fund had $384.9m in assets under management, and 12 months later had $265m in assets, a loss of $119m.
Papiolek said: "This is nothing to do with performance - we will not be shutting the Europe fund. It has just had one or two redemptions."
The legal vehicle used for the macro fund has remained intact for a launch expected in the second quarter. RAB is also looking to launch at least three new hedge fund strategies in the first half of the year, including an emerging market debt fund, a European loan fund and a commodities trading fund.
RAB currently runs eight hedge fund strategies that are mainly equity long/short: American, emerging Europe, energy, Europe, European high yield, Japan, special situations, and UK, as well as two funds of funds.
Despite improved risk appetite
FOS award limit increase
Relates to 136 million transaction reports
Ceremony will take place 13 November