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

Ok I would say most people interpret quick time as within a three month period, I guess you must be happy with that or maybe if you realise that most would think that perhaps you may think you should change it?

As for you fundamental analysis no where do I see where it justifies 1 share price (or are you just looking at the best performing fund & ignoring all the others?)....if you don't want to tell us how 1 is justified then I understand.

Sorry thirdeye, once again misrepresenting and trying to put negative thoughts into investors minds.

Its quite simple what is short term, medium term and long term but perhaphs because of your ignorance of the main markets you do not have any experience of the main markets brokers terminology, well sorry but thats not my job.

Perhaps you should look it up as an apprentice to the main markets, lets not forget we have all had to do the same.

I wish you the best of luck and I hope you grasp the terminology fairly quickly, failing that and you dont understand please forward on a PM and I will explain it to you step by step.

cheers GF.

GF

Why bother to respond to him?

Just Ignore him!

I'm just waiting to see the bottom so when the shorting is over I'll get back in again.

The price just looks more attractive every day.

The link from Janus on the Bioprogress thread makes the drop a little clearer.

Apple I agree, in fact Im think we should all ignore him on this thread, just let him blah blah and blah to himself.

Many thanks for the help cheers GF.

Gf I seemed to have grasped that this share would hit 40p & then fall further (now 32p bid) while your grasp was it would be a 1 quick time.

I leave you to work out who has the better grasp.

Well I'm back in!

I saw the price turn upwards at mid day so I joined in again.

What a nice rise!

In profit already :-)

Stephen Kahn,City Editor for The Express writes,

Stock markets are supposed to reflect conditions three to six months ahead. The relative bouyancy of the Footsie and the Dow-despite the oil crisis and the threat of higher interest rates-bodes well for companies in the second half of the year.
A large component of this is based on the evidence that world economic recovery has arrived. China is making the headlines but almost unnoticed,JAPAN has managed to shake free of recession.
RAB Capital has this week launched a very well funded,JAPAN FUND.Certainly looks like RAB have good timing in launching two of the 2 new funds, the other being the Energy Fund.

cheers GF.

Thanks GF

Goldfinger I notice that Rab was listed on the Berlin Bourse 21.04.04 and presume that the drop in share price was down to shorting on that market. How can we be sure that the shorting has stopped and RAB can head north again ?

I think we all to bear in mind that the shares never moves on a straight line. If u really want shares that moves up and down violently tehn I dont think this is the correct one. give yourself a medium to long term vision for RAB and you can be in profit. So far the company has the correct fundamentals. Judging by the new inclusions of new hedge funds then the company is investing and taking advantage where the market growth is. It was bound for this share to drop below its initial launch price due to the fact that its NAV head away north to far. Give it time to adjust and for buyers to return. IMHO

Remember all shorters have to cover at some stage and as their 'profits' diminish, they do so rapidly. At least now we know it was not about fundamentals, as i pointed out. Angi where can i get a list of UK stocks listed in berlin? thanks.

Gosh, strange how someone has vanished!

Well done apple!

If it's on Berlin isn't going to be subject to shorting again?

Also remember BPRG had a big bounce, since then very little action, in hype terms around the internet, this share does remind me of BPRG.

TEMPER TEMPER.........THIRD EYE. U DONT FIGURE HERE ANYWAY

No temper at all, just making a point about RAB & BPRG. Thought you may have filtered me Xmortal if I don't figure :-) (No need to shout btw)

I wonder if the bounce will hold? If it has been shorted at certain levels, what reason is there it won't again, I guess some have sold into strength.

Hawick, the way I found Berlin Bourse was after reading an article on naked shorting:

www.fillyaboots.com
click fillyaboots archive
click "Stockgate" and naked shorting
www.berlinerboerse.de/?
click about us
click new companies
click listings


Pour yourself a whisky first!

Thrid EYE we are going to have the last laugh anyway. Just watch this space. To holders of RAB the TA is turning to aour favour, again this is also due to the positive mood in the markets.

Hi Angi, you will see the shorters scapering as soon as the price rises and I expect that over the short term. I wouldnt get too worried about them though wether they are from this country or Germany.

Some investors have said that the Germans have acted illegaly, to be honest I dont really give a jot as the results are out next month and we should be in for some corkers.

cheers GF.

Thanks Angi, I am not worried by shorting anyway, if you believe in your stock picks then it is not a problem in the long run, but a whisky is a very good idea!!! Quite clearly RAB is as i have pointed out undervalued at this level on fundamentals. Who introduced BPRG into this thread? Oh yes i know.

And Cobra into Cherwell. And so on.

Thrid eye is just a nightmare. Lets not anwer to him anymore, just like in a circus, if a clown has not an audience, his act is finished.

All,

I have watched this dispute across several threads for the past few weeks, and have had cause to comment on a number of occassions, as several posters have over stepped the mark. This has been the case for all involved on both sides of the discussion.

I am issuing a final warning for all those who have been involved - If I have cause to intervene with regard to any poster again, I will remove their access to these boards for a period of 24 hours. If I then have cause to warn that person any further I will remove their access from this part of the website completely.

I hope that I have made myself clear, and I hope that you all have a good day.

Regards

Ian Taylor
Customer Support Manager
MoneyAM