Funds Hub
Money managers under the microscope
RAB fund still paying the price
RAB Capital’s struggling Special Situations fund looks to have recorded a positive return in 2009, but after a bumper year for the industry it is still paying the price for the investments it made in illiquid assets before the credit crisis.
Having seen their investment lose around half its value in 2008 while much of the fund’s money was in hard-to-sell assets, the fund’s investors agreed in autumn ’08 to lock up their money for 3 years in return for a cut in fees.
Today’s update from the listed feeder fund shows a gain of 6.5 pct for the first 11 months of 2009, helped by a strong November.
However, the update also shows an interesting divergence in performance, which seems to reflect the demand by investors across the board for liquid assets, whilst many still shun illiquid holdings.
Improving situation at RAB Special Sits
Encouraging news today from RAB Special Situations after the listed fund (a feeder into the main hedge fund) reported a 10.5 percent NAV rise in May.
While this is behind the index return, it nevertheless marks a welcome boost for a fund that has reflected many of the hedge fund industry’s recent problems.
