Losses worsen at RAB Capital hedge funds

STRUGGLING hedge fund manager RAB Capital’s losses deepened yesterday, after it reported a pre-tax loss of £20.2m and a 15 per cent fall in revenues last year.

Assets under management tumbled 21 per cent to $1.06bn (£662m) last year as a mixture of underperforming funds and fleeing investors hit the company, which issued a profit warning in September.

The firm said $124m of this fall was due to funds being closed or sold on, while $53m was repaid to exiting investors.

“Our results for the year are not satisfactory,” chief executive Charles Kirwan-Taylor, who took the top job in September during a large-scale reshuffle, said.

The firm has closed a number of unprofitable strategies, cut almost £2m in costs and ramped up marketing to try and reshape the company going into 2011, it said in a statement.

RAB’s funds have had a patchy year with the RAB Energy fund, its best performer, gaining 47 per cent while others including its special situations fund lost up to 7.6 per cent.

But management and performance fees fell 14 per cent to £9.2m and £2.4m respectively.