Had this on the watch list too long and could kick my own ass if it was possible. I think this is just the type of play needed on these markets along with Value shares such as Churchill China that I recommended yesterday.

Heres just a brief background on the company.................

Hedge fund leads rush to float
by Louise Armitstead
RAB Capital is the first to plan a listing in London. Others are bound to follow

IN the spring of 1999 Philip Richards and Michael Alen-Buckley arrived almost empty-handed at their new office — a small room in 1 Adam Street, just off the Strand in central London.
The day — April Fools’ Day — seemed apt at the time. Richards and Alen-Buckley, both highly regarded bankers at Merrill Lynch, were giving up stellar careers to start their own hedge fund, RAB Capital. The only money they had was their own, and their staff consisted of one manager, a compliance officer and a secretary.

Five years on, the little room in 1 Adam Street, still RAB Capital’s main trading floor, albeit straining under a vastly expanded workforce, is again the engine room of an ambitious and pioneering venture.

Last week RAB Capital became the first stand-alone hedge-fund company to announce its intention to float in London.

Richards, 46, and Alen-Buckley, 43, will be at the helm of a company with a market value that could be as high as 100m. Their stakes could be worth 30m each. Advised by KBC Peel Hunt, the firm will release a prospectus tomorrow revealing how much money it intends to raise.

In the past five years, Richards, a former army officer, and Alen-Buckley, who is the son-in-law of the hotelier Lord Forte, have increased their funds under management from 4m to an estimated 1.1 billion. They have 40 staff (16 of them managers), 7 hedge funds and a track record that is the envy of the City.

RAB’s first fund, the European equities fund, which was launched in November 1999, has made returns of 84% despite the tumbling markets.

Floating will for the first time allow small investors to take part in the success of a hedge-fund boutique rather than investing in one fund.

But there is growing concern that they will also be exposed to risks that at the moment are restricted to professional investors.

Watching in the wings are hundreds of other hedge-fund managers, salivating at the thought of following RAB to market and realising the value of their businesses. Investment bankers and advisers are also rubbing their hands at the prospect of a spate of similar deals.

Two funds earmarked for flotation are Thames River Capital and GLG Partners, one of the biggest hedge funds in London, with about $8 billion under management. Experts say plenty of others are looking to float as a way of cashing in.

Richards and Alen-Buckley dismiss the suggestion that this is their motive for floating RAB. “Right from the start we wanted to create a long-term business and we’re here to stay,” said Richards. “Floating is an indication of our permanence. Neither one of us will be taking cash out. We are also doing this for our staff. We have given them options over the years and this will be their chance to realise some cash. Staff loyalty is important to us and to our clients, who like the stability this offers.”

The cash raised from the float will also be used to launch additional hedge funds and bankroll the company’s rapid expansion.

Managers have already been hired for several new funds that will specialise in energy and in Japan. Small investors are likely to be attracted through a joint venture with Saga, which provides services for the over-fifties and has 7m customers.

Richards and Alen-Buckley built impressive reputations in the City working together in the late 1980s at Smith New Court, where they helped to build the stockbroker from a market value of 10m to one of 500m by the time it was sold to Merrill Lynch in 1995.

Both men had been watching the growing hedge-fund industry with interest. Alen-Buckley had numerous contacts, including leading figures such as George Soros. They spent four years at Merrill before quitting to set up RAB.

Alen-Buckley, who is taking the title of executive chairman, is described as the “public face” of the business. Richards, who goes from chief investment officer to chief executive, is more involved in strategy.

Richards runs the Special Situations fund, which is just over a year old but has already generated a return of 1,274%.

Since hedge funds are known for being opaque and secretive, observers are concerned that RAB will struggle to live with the scrutiny that comes with being a public company.

Richards said the company planned to float on the Alternative Investment Market (AIM) rather than the main market so that lengthy meetings with institutions could be avoided. “We want to spend our time managing the money, not talking about it,” he said.

“We have a simple philosophy. Our goal is to produce consistent returns in all market conditions. We think that if you work on managing the risks and reducing the downside, the upside tends to look after itself. The float is exciting but it will still be business as usual.”ENDS



Please DYOR, you are responsible for your own buying and selling timing actions.

cheers GF

Yup apple, Caldwell was a 4 bagger for me along with Sporting Bet another 4 bagger plus although I have cashed in my dosh with Caldwell but am keeping SBT running. Evil Knievil closed his short in Sporting Bet Tuesday thats him finally out of the market and he says the short turned out to be a dissapointment.

RAB will out beleive me it will only take the POG to rise at some point over the next month. I have a massive cash balance just waiting to bang into Gold stock , please watch them very carefully as I feel the gold boom will once again rise and go even higher, strange that the most sucessfull investor in Britain Jim Slater also appears to think that way, just look at this reported today.....

Galahad Gold said James Slater, deputy chairman and finance director, has acquired 2,500,000 shares in the company at a price of 11.45p per share, taking his holding to 66,007,133 or 11.73%.

Avocet Mining said Nigel McNair Scott, chairman, has acquired 50,000 shares at 60.5p each, taking his holding to 5,525,000 shares or 5.33%.

Cheers GF.

Well as my third eye predicted a spike & back down.

Would be nice to know actually just where that thirdeye is situated?, is it up your a--e as lemon top stated on ample?.

cheers GF.

lol..

Average performance from 7 funds 197.8%, supplied by my dear freind Invisage.

cheers GF.

Goldfinger
could you read the mdw thread please.

Looks like the market correction is bringing us a few realistic prices, expected further downside and so it has this morning...-4p


No longer think this will settle @ 66% premium to issue price, more like 50% @ 37.5p.

Well, I did say 41.5p originally & here is it 41.5p middle.


Not sure of 37.5p anymore more like 30p, I think the bulls have given up posting, maybe they see it as a lost cause or they have all bailed out?

Not at all Thirdeye.

I thought 45p fair value for rab and in all fairness its still not far away from that at 40/43p, the spreads on seaq stock make it hard to pinpoint fair value precisely.

Do not see 30p unless major untruths in prospectus which will blow rabs business credibility permanently

RAB Capital aims to be big in Japan
May-13-2004 - London's RAB Capital plc, which hit the headlines in March with its AIM listing, will appoint Nick Reid, formerly senior Japan fund manager with Gartmore, as senior fund manager next week.

Reid will co-manage the new the RAB Japan Fund with Robin Cosgrove, who joined the firm in January and also has extensive experience in Japanese markets. Cosgrove and Reid had been in discussions with RAB since October 2003.

The fund will be launched on June 1, with $50 million from RAB Capital funds and the principals. The largest allocation will come from several funds of funds based in the US, the UK, France and possibly Switzerland.

The new Caymans product will offer four main share classes in dollar, yen, euros and sterling, with a Dublin listing still pending. The fees for these classes will be 1.5/20 with monthly liquidity, with a minimum investment of $100,000 or equivalent. Unlisted subclasses will be offered at 1.5/15 with a one-year lockup and quarterly liquidity thereafter, and a minimum investment of $50,000 or equivalent. Capacity is estimated at $350-500 million.

At least 70% of the RAB Japan Fund will be invested in large caps, with up to 30% in small/midcap opportunities. In particular, the managers are focusing on sectors benefiting from improving corporate and household cash flow, such as industrial machinery, housing, real estate, financials and retail.

"The core universe will be about 20% of all Japanese companies, accounting for 80% of Japan's market capitalisation," said Cosgrove, "For the first time in 10 years, Japanese large caps are trading on 15 times while the overall market is on 20 times, on a P/E basis."

Directionality will be limited, and alpha will be generated from stock picking and managing the balances. Cosgrove anticipates that the fund will trade with gross leverage of 120-160%. Target annual returns are 15% with 8-12% volatility, or 50% of the Topix index.

"This is RAB's first venture into Southeast Asia," said Cosgrove, "but over the next six months we are looking for a non-Japan Asian long/short team to complement what we are doing in a fund to launch at the beginning of next year. Subsequently, there might be a third Japan and Asia fund.

"RAB has about $1.5 billion under management now, and over the next two years if things go well, we could see $500 million in Japan, $500 million in non-Japan Asia, and up to $500 million in Japan

cheers GF.

Many thanks for posting the article on Rab,GF. Regards Paul.

Yes I think they could expand there big time. Still very bullish on this one for long term portfolio. MAN Group fell 15% in the last month, and RAB being much smaller was hit even harder, but i sense the tide is about to turn now. Man rebounding today and i am confident that will follow through to RAB. Then those negative on the stock (not many I note) likely to get badly stung. Ironic that a hedge fund should itself have been shorted, but they will have to cover soon and suddenly in next few days imho.

Normally I get shot of losers but I see so much growth here long term, this is the type of stock that is the perfect exception to the rule.

Nice to see some constructive debate rather than the blah blah blah from one poster.

cheers GF.

goldfinger

I've been watching this 1 ever since you flagged it up & the price is now so tempting that I'm looking to sell something else to get some of these.

It looks like a winner to me.

Trouble is that I'm not holding much cash which is a mistake in the current market.

Apple dont forget Man Group results out in the morning could have a knock on effect if they are good.

cheers GF.

Thanks GF

I expect to get in tomorrow.

Man may cause this level to be the turning point.

Ah the bulls are back, so just -1p today if it's such good quality & everyone has done their own research & indeed are confident of their own research & all their bullish comments on here I wonder why they aren't picking up more stock, I did with BPRG just recently & had 3 trades cashed at a handsome profit, what about you guys?

As for blah blah blah, my blah blah blah was spot on in predicting 41.5p just recently which certainly was much nearer than what the bulls have been predicting.


A lot cheaper to buy now guys.....if you are still confident of course.

Gf, Thanks for bringing this stock to the board and all your related posts - I bought in today.

Thirdeye, Many thanks for your posts. I have to admit that your bearish and negative posts just swayed me from buying in at 60p+. I owe you a pint.

Hopefully I have bought at the bottom and gains woll follow.

Keep smiling

Again from one poster, blah blah blah blah sniff, blah blah blah hic, blah blah blah blah, blah blah , blah fart, blah blah blah blah blah blah blah. Comprendo.

cheers GF.

Well done Riviera good to see some posters have conviction & can write posts in an adult manner.

No need for a pint glad to help :-)