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.

rtx5jedDespite 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.

Rising commodity prices have helped, as has an easing of the illiquid markets in which Special Situations found itself caught last year.

Nevertheless, the name of the game this year has been taking few big directional bets, although some have gradually been put on as the year has progressed.

“Overall this has been a nervous environment that has seen the more liquid RAB strategies take low levels of directional risk, typically edging up from January’s market neutral stance to modest net long positions at the end of the first half,” the firm said this morning.