RAB Capital, the beleaguered hedge fund that was once a poster child for London??s finance boom, is to delist amid a crippling wave of redemption requests from investors.The move would bring to a close the company??s four-year public demise, which has seen investors and shareholders lose billions through steep losses brought about by the financial crisis and high-risk investments in companies including the doomed UK lender Northern Rock. RAB, which at the beginning of the year oversaw assets of just over $1bn ?? a far cry from its peak of $7bn in 2007 ?? has seen its remaining assets evaporate in recent weeks.
Investors pulled $370m from RAB??s flagship $470m Special Situations fund last month when a three-year moratorium on withdrawals finally expired.
Since then, clients ?? fearful of the RAB??s viability ?? have abandoned the company??s other strategies.
The firm??s $120m Cross Europe fund has been swamped by redemption requests, say people familiar with the company.
In addition, one of RAB??s remaining star money managers, Gavin Wilson, is to retire from the firm. Mr Wilson??s $250m Energy fund has been one of RAB??s best performing offerings of late.
The fund returned 46 per cent last year and 86 per cent in 2009. Mr Wilson??s retirement is likely to lead to significant redemptions, in spite of his co-manager, Mark Redway, remaining at the helm.
Mr Wilson was also in charge of the RAB Octane fund.
In a trading update on Wednesday, RAB said: ??The board intends to review the options for the company, including the appropriateness of maintaining an Aim listing, and the possible use of the company??s surplus capital to provide some liquidity to shareholders.?
RAB declined further comment. The shares fell 22 per cent to 8p in late morning London trading. ents in companies including the doomed UK lender Northern Rock.
