RAB bullish as clients come back

City A.M. Reporter
E fu

E fund firm RAB Capital yesterday confirmed clients are returning to its funds that were battered by the credit crisis, after it swung to a loss in 2009 and cut its dividend.

RAB, which specialises in energy and commodities funds and is also well-known for its failed bet on bank Northern Rock, yesterday reported a loss before tax and exceptional items of £6.9m, compared with a profit of £3.8m in 2008.

Assets under management recovered to $1.35bn at the end of 2009 from a low of $1.26bn at mid-year as clients returned to its funds in the second half. But that was still far below the more than $7bn assets under management in December 2007.

RAB’s inflows come as investors slowly return to the $1.6 trillion hedge fund industry, which suffered big losses in 2008 but recouped much of that last year. According to Hedge Fund Research, clients reinvested a net $13.8bn into hedge funds in the fourth quarter.

“We’re seeing generally a lot more interest from investors,” RAB chief executive Stephen Couttie said. He added that assets had changed little since December, as client inflows balanced out previously demanded outflows.