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

xmortal,

looking forward to reading it!

HERE YOU ARE:

LAST AVAILABLE REPORT DATE: 31/12/2003 (period cover 12 months)

MARKET CAP 145.20M
SHARES IN ISSUE 372.30M

Revenue: 23.24m
Operating Result: 9.12m
Pre Tax Profit/(Loss) 10.56m

Total Current Assets: 22.06m
Cash-Equivalents: 4.08m
Fixed Assets: 2.84m
Total Assests: 24.95

Total Liabilities: 15.34m
Long Term Debt: 0m
Shareholders Equity: 9.61m

KEY RATIOS:

Return on Equity % 70.52
Return on Total Assests % 41.76
Operating Margin % 39.95
BVPS (GBP) 0.03
Quick Ratio 1.50
Total Assets/Equity 2.60
Price to Book 15.11

FORECASTS:

EPS 2004: 3.40 EPS 2005: 4.80

DPS 2004: 0.30 DPS 2004 0.43

EBITDA: 18.400M EBITDA 2005: 25.800M

PRE TAX PROFITS 2004: 18.80M PRE TAX PROFIT: 2005 26.30M

So total assets are 24.95m & total liabilities are 15.34m giving 9.61m shareholders funds.

So if the mkt cap is 145m then the Nav s 6.2% of mkt cap or if judged by today's price 2.4p NAV?

Of course if the report date is 2003, my figures may be over generous!

Even if profits are met we would have NAV of 5.8p.

Is that correct Xmortal?

I am looking forward to my 100p by xmas!!! wow, exciting hey!!! again THANK YOU MR GREENSPAN......WE WELCOME YOUR VIEWS.
UPDATE 2-Mutual fund group backs SEC hedge fund crackdown
Tue 15 June, 2004 21:55


WASHINGTON, June 15 (Reuters) - The new president of the mutual fund industry's lobbying group on Tuesday endorsed a move by U.S. regulators to crack down on hedge funds, while Federal Reserve Chairman Alan Greenspan again questioned it.

In his first public remarks since becoming president of the Investment Company Institute two weeks ago, Paul Stevens backed a U.S. Securities and Exchange Commission move toward requiring that hedge funds register with it.

The SEC staff recommended in September that hedge fund advisors be required to register with the SEC by providing basic information about their businesses. SEC Chairman William Donaldson has repeatedly called for hedge fund registration.

"His call should be heeded," said Stevens in a speech at the National Press Club.

Hedge funds are loosely regulated capital pools popular with rich investors and financial institutions. Although growing fast, the $850-billion hedge fund industry is still dwarfed by the $7.4-trillion mutual fund business.

Government investigations have shown recently that hedge funds were closely involved in scandals involving market-timing, or rapid trading in mutual fund shares.

"Market-timing was often done by stealth and deceit," Stevens said, calling some hedge funds' market timing strategies "deliberate and predatory."

But Greenspan, asked at a Senate Banking Committee hearing about hedge fund regulation, said his view still was that regulation would be harmful to the financial system. He said hedge funds have made the system more flexible and helped the economy absorb shocks.

"I'm certainly of the opinion that, should hedge funds accept capital from retail investors, they should be under the same regulations as a mutual fund," Greenspan said.

"But so long as their source of funds, equity funds, are professional or large investors with net worths, say, exceeding $1 million or more, I see no purpose in regulation and I see very significant potential loss in doing so," he said.

So we are going to 1 on 2.4p Nav?

How long will Greenspan be around?

Greenspan will be around for a long time. Much longer than you.

NAV as per Evolution Beeson Gregory report is 27.1 million and the broker as a 58p short term price target going up to 90p within a 12 month range period, stats from BUY note late MAY when coverage was initiated. The NAV figure could then very well be higher than that listed above. (15.1 million net cash and Zero gearing.)

cheers GF. Please note the NAV figure does not include the recently introduced new funds including the Japanese and the Energy fund.

Looks like thirdeye is yet again misrepresenting, whats new?. Results out JULY.

Using Xmortal's quoted figures not mine.

Using g/f figure of 27m NAV it's only circa 7.2p per share NAV.


Seems the bulls are confused between them what the NAV is.


So we are going to 1 quick time on NAV of somewhere between 2.4p-7.2p?


If the NAV doesn't include the JAP or Energy fund, does that mean the money was given free to RAB or were shares issued or was it borrowed, in which case until it is put to work it won't make a jot of difference.

Goldfinger please dont asnwer any of Nitemare on MoneyAM remarks. He is so obsessed with us.... let him speak all he wants. He does not practice any fundamentals, confirmed by what we've seen that on his Ofex bets.

It probably would be best for you two guys to stop debating RAB, you don't seem to be doing the price much good with your bull points, & your NAV figure seems to be anywhere from 2.4p to a figure 300% higher @7.2p from what I can work out.

NAV is far higher than you are making out thirdeye and you jolly well know that.

You have not taken into account the 6 new funds, in fact your once again deliberatly trying to mislead.

Not that NAV matters that much with a fast moving hedge fund, I suppose thirdeye is looking upon it like an investment trust, like I say thirdeye read the book from Soros and you will understand hedge funds you obviously dont now.

Come July we will have the correct figures rather than the 'pie in sky' figures from thirdeye. No point in debating a share when someone cannot grasp the management aspect of this company and the difference between the investments it manages.

cheers GF.

the chart today looks promising, there is a Harami Cross developed so far(candle charts) this means a change in direction from downwards to upwards. he trend still upwards anyway. I will top up today, The MACD and RSI seems to support this too. What do u think GF?

I have used your figure g/f & where did the money for the new funds come from thin air?

The money came from shorting KMS 100000% downfall!!!!LOL

Pity thirdeye that you continue to misrepresent, anyone notice how he uses a 6 month historical NAV figure but uses the up to date market price figure. oh dear thirdeye I set you up for it and you walked straight into it.


What a mug you are.

LOL.


cheers GF.

A 'mug' that forecast 40p & got it right :-)
A 'mug' who has forecast 30p next stop amongst all your childish insults. Looks like this 'mug' may be calling that right too :-)

If we strip your figure of NAV from the share price it leaves about 30p premium, that's a hell of a lot of profits over the years & good news already in the price, lets hope RAB can deliver.

We dont know the up todate figure for NAV, this is not an investment trust.

As I predicted yesterday by my TA analysis the price has moved still in the upward trend. 6.76% up

RNS Number:3004Z
Caledon Resources PLC
01 June 2004


SCHEDULE 10

NOTIFICATION OF MAJOR INTERESTS IN SHARES

1) Name of company
Caledon Resources Plc

2) Name of shareholder having a major interest
RAB Special Situations LP

3) Please state whether notification indicates that it is in respect of
holding of the shareholder named in 2 above or in respect of a
non-beneficial interest or in the case of an individual holder if it is a
holding of that person's spouse or children under the age of 18
as above

4) Name of the registered holder(s) and, if more than one holder, the
number of shares held by each of them
RAB Special Situations LP

5) Number of shares/amount of stock acquired
12,274,779

6) Percentage of issued class
5.7%

7) Number of shares/amount of stock disposed
NIL

8) Percentage of issued class
NIL

9) Class of security
Ordinary shares of 0.1p each

10) Date of transaction
28 May 2004

11) Date company informed
1 June 2004

12) Total holding following this notification
23,159,144

13) Total percentage holding of issued class following this notification
10.9%

14) Any additional information
N/A

15) Name of contact and telephone number for queries
Donal Douglas, Tel: 020 7318 5780

16) Name and signature of authorised company official responsible for
making this notification
Donal Douglas, Tel: 020 7318 5780

17) Date of notification: 1 June 2004

Xmortal like you indicated before please do not get involved in an argument with thirdeye again.

Ignore him so that we do not get involved agaein, I will gladly debate with you wether negative or positive.

No more from me re - thirdlye.


cheers GF.