Money managers under the microscope
News and views on the asset management industry from Reuters and elsewhere:
Arnie drops plans to raid Calpers - Reuters
RAB Capital gives profit warning - Reuters
CQS sees demand for high yield in Asia fund - HedgeWeek
ALFI prepares for Asia surge in UCITS - HedgeWeek
Directors’ dealings are widely seen as a sign that management are putting their money where their mouth is, so with RAB Capital’s shares just off a year low, shareholders may be encouraged by two small, recent purchases.
Director Adam Grant spent almost £12,200 on an initial holding of 92,400 shares at 13.203 pence each, while Amanda Moore, wife of non-exec Philip Moore, paid close to £5,000 for an initial stake of 38,674 shares at 12.8334 pence each.
RAB Capital’s results this morning — showing an expected 32 percent fall in assets but signs of net inflows into its single-strategy hedge funds — also reveal how its managers are positioning their portfolios.
Despite a further 5 percent performance loss year-to-date at Special Situations, after last year’s big losses, performance at RAB’s other funds has been strong — the Energy fund is up 55 pct, the Global Mining fund 42 pct, the Gold and European Credit Opportunities funds 20 pct in H1.
It was the outcome most commentators were expecting.
But the defeat for hedge funds RAB Capital and SRM Global and other former shareholders claiming damages for the loss of their holdings in Northern Rock when it was nationalised last year is nevertheless a hard blow to bear.
It’s been a tough 2008 for RAB.
As the industry faces its biggest-ever crisis, RAB’s own assets have slumped to just over a quarter of what it ran a year ago, while fees have inevitably fallen too.
Meanwhile it has also taken charges after making acquisitions, only to see their assets fall, and for losses on investing in its own funds.