12 May 2011
A slide in assets at RAB Capital, exacerbated by the departure of star manager Gavin Wilson, has led company management to put its AIM listing under review. News of the move saw RAB’s share price fall over 20% to around 8 pence – near its all-time low in early 2009.
At Dec. 31, assets under management were $1.06 billion. Since then, redemptions have been submitted in respect of the RAB Special Situations (Master) Fund, which amounted to 79% of that fund.
Other redemption notices have also been received in respect of RAB Cross Europe Fund and other assets managed by that team. In addition, Wilson, who co-manages the top performing RAB Energy Fund and the RAB Octane Fund, has said that he intends to leave the firm for personal reasons. Mark Redway, who has co-managed the RAB Energy and Octane Funds for the last six years, will continue to manage these two strategies.
As a consequence of these redemptions and events, and their impact on both the level and anticipated growth of assets in these strategies, overall assets are likely to move to a level below management’s previous expectations, necessitating further restructuring. The path for the company’s return to profitability will be impaired relative to management’s previous expectations and the board’s outlook for the current financial year is now significantly below its former expectations.
RAB intends to continue to support its core strategies, including the UCITS funds it has recently launched. However, the board intends to review the options for the company, including the appropriateness of maintaining an AIM listing, and the possible use of surplus capital to provide some liquidity to shareholders.
At Dec. 31, assets under management were $1.06 billion. Since then, redemptions have been submitted in respect of the RAB Special Situations (Master) Fund, which amounted to 79% of that fund.
Other redemption notices have also been received in respect of RAB Cross Europe Fund and other assets managed by that team. In addition, Wilson, who co-manages the top performing RAB Energy Fund and the RAB Octane Fund, has said that he intends to leave the firm for personal reasons. Mark Redway, who has co-managed the RAB Energy and Octane Funds for the last six years, will continue to manage these two strategies.
As a consequence of these redemptions and events, and their impact on both the level and anticipated growth of assets in these strategies, overall assets are likely to move to a level below management’s previous expectations, necessitating further restructuring. The path for the company’s return to profitability will be impaired relative to management’s previous expectations and the board’s outlook for the current financial year is now significantly below its former expectations.
RAB intends to continue to support its core strategies, including the UCITS funds it has recently launched. However, the board intends to review the options for the company, including the appropriateness of maintaining an AIM listing, and the possible use of surplus capital to provide some liquidity to shareholders.
