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

This share has recently had a few mini spikes before resuming it's southerly direction, If i were a holder I'd be selling on one of the spikes.

Up 2.5p excelent.

cheers GF.

2p up maybe started to turn back down already? Must admit it was looking overdue for a mini spike.

I am a holder and I would not be selling on the spikes, rather if I could 'make funds' (lol would we were all poor little rich kids - don't ya love it when people sneer at the smaller investor) would be buying on dips. Falls slowed last few days and signs this is more than just a spike all imho.

Me too hawick.... not born with any silver spoon in my mouth, any cash I have, has been made through investing, must have made some lucky choices & avoided some of the stocks with the extra hype ingredient on the bulletin boards ;-)

Personal attacks again from thirdeye, dont you ever give up?.

This board is for debating RAB and its a shame to see you attacking Hawick after he made a valid point about the decreasing volatility of this stock.

It is indeed. Instead of avoiding my questions by telling me I'm making personal attacks (How the heck was that reply to hawick a personal attack?) maybe you will answer my previous question out of courtesy?


Here it is:

G/f your post on - 20 Apr'04 - 10:43 - 28 of 194

G/f says: Motoring again this morning bid offer now 60p 62p, its going to 1 quick time.



What sort of timescale did you have in mind?

Sorry no reply from me thirdeye the management have asked me to ignore you.

Gold jumps as much as $8 an ounce
Mining indexes climb back to three-week highs

By Myra P. Saefong, CBS.MarketWatch.com
Last Update: 10:26 AM ET May 21, 2004


SAN FRANCISCO (CBS.MW) -- Gold futures climbed as much as $8 an ounce and mining indexes reached their highest levels in three weeks Friday morning, as weakness in the U.S. dollar attracted more investors into the metals market.



"Gold exploded ... as investors saw the opportunity that gold may have been undervalued in relation to the current actual interest rate levels," said John Person, editor of The Bottom Line. See the newsletter.

Gold for June delivery climbed as high as $386.80 an ounce on the New York Mercantile Exchange.

At last check, the contract changed hands at $385.50, up $7 an ounce. It hasn't traded at levels this high in two weeks. It's also up from the week-ago close of $377.10. See the latest futures prices.

The euro and Japan's yen both rose against the dollar in Friday's foreign-exchange dealings. See Currencies.

"The gold bulls are strong and the bears simply come in briefly and then get spooked," said Kevin Kerr, editor of Kwest Market Edge. See the newsletter.

But "gold needs to get back over $400 before it can get out of this recurring trend," he said, projecting that the precious metal "may very well do that in the next couple of weeks or even earlier."

Also in metals futures, July copper traded up 3.7 cents at $1.2235 per pound, July silver rose by 10 cents to $5.88 an ounce, July platinum tacked on $8.10 to $811 an ounce and June palladium added $6.50 to trade at $246.50 an ounce.

As of late Thursday, copper supplies were down 1,909 short tons at 142,937 short tons, according to Nymex. Silver stocks were down 5,964 troy ounces at 120.4 million troy ounces.

Gold inventories stood at 4.33 million troy ounces, up 3,441 troy ounces from the previous day.

Mining stocks

Meanwhile, mining benchmarks also moved to the upside.

"The majority of shares are now deeply oversold and very attractive," said Peter Grandich, editor of The Grandich Letter. See the newsletter.

Tracking the sector as whole, the CBOE Gold Index ($GOX: news, chart, profile) climbed 2.5 percent to stand at 76.59, and the Amex Gold Bugs Index (HUI: news, chart, profile) reached 191.19, up 2.4 percent. Both indexes are trading at levels not seen in three weeks.

The Philadelphia Gold and Silver Index ($XAU: news, chart, profile) also rose by 2.4 percent, to 85.98, a two-week high.

Among the biggest gainers in the mining shares, Freeport-McMoRan Copper & Gold (FCX: news, chart, profile) climbed 4.4 percent to trade at $31.76.

Shares of Alcoa (AA: news, chart, profile) were up 70, or 2.7 percent, at $30.09. The aluminum producer said Friday that its Alcoa Fujikura automotive venture is restructuring operations in Mexico, leading to a total of 2,350 job losses.

The company said the job losses are the result of the "competitive conditions of the global market," precipitating the need to adjust the company's capacity to "better match demand." Alcoa Fujikura makes electrical distribution systems and other products for the North American light- and heavy-vehicle markets.

cheers GF.

Sharecaster, I never said all hedge funds do well, in fact as in an earlier post mentioned RAB burnt its finger in an investment it made, but that only a small fraction. RAB trades for now in smaller/junior mining companies, they defo taking very high risk, then again the rewards are very high too.

I would like to recommend to some of you to read about the hedge fund industry in America where is has been established much longer than in the UK. They have been very profitable!!! If it is FAD as Mr Buffet claims then let it stay but this fad is here to stay, just like Blue Jeans!!!

BTW I bought some this PM, I was going to buy this morning but had to leave the office, when I returned, they were 7%up. I am in this one for a long term.

Looks to me like this has just spiked along with gold.

As I have said before, higher interest rates in the US a stronger dollar etc seem to have been affecting the gold price, I'd say that looks set to continue.

Mining stocks to my mind have had their own bubble, small rallies will be evident, but the direction at least at the moment is down the same as RAB's share price.

A post I agree with:

I am surprised that nobody has yet woken up to the fact the 'hedge funds' are just mutual funds with enormous fees. When there were just a few boutiquey hedge funds which were difficult to access and often quickly closed to new business, the possibility of a small number of very talented people making super normal gains was a reasonable prospect, But surely it is becoming clear that with HUGE numbers of funds and assets, hedge funds collectively must collectively, only track the wider market. Its an investment for stupidos imho, half the funds are likely to our perform and half underperform, a fund of fund is going nowhere, but the half of the funds that outperform are going to deduct whacking great charges, not compensated by the half that underperform - and even underperformance will attract fees of 1% + in most cases, making an average deduction of 11% for market tracking!

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Part of an article from the FT on saturday talking about Hedge funds:

But the FSA now wants to know if the market is overheating and whether banks are being too lenient on hedge funds in their efforts to bring in new business.

The most prominent example of wayward lending - one that still haunts Wall Street - is the Long Term Capital Management debacle in 1998, when 16 banks nearly brought down financial markets by allowing LTCM to borrow to the hilt. In its Financial Review Outlook published in January, the FSA says it was concerned about the risk posed to the financial system by hedge funds. It singles out growing competition as a potential area of concern.

It also notes that hedge funds were employing more leverage than in the second half of 2002 - although it adds that the levels were still well below those seen in the days of LTCM. A report this week by Greenwich Associates, a US-based research company, adds weight to the FSA's concerns. It argues that growing competition among banks for lucrative hedge fund business might be leading them to relax their controls on credit.

"These trends bear serious consideration on the part of hedge fund investors, not only as possible indicators of an overheated market, but also as potential harbingers of intervention by regulators in the United States and Europe," it says.

This is the chart that is most relavent in my opinion....longer term it may not hold but it does show for now Rab is a fair value entry point long assuming the prospectus was accurate.

Well I did say it might be a spike.

It has now gone below my 41.5p forecast & his heading south for my next one.


1 in quick time some said...others said 41.5p & were right.

I'm out, price is about back where I started.

I misjudged the bottom, I'll stand back & watch for a while.

A lot of good news in this weekends papers for holders of base metals. Watchout is the word weve seen nothing in the top so far.

cheers GF.

GF....please reply to email regarding BPRG...got news for you!!!

nematode-you have mail