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

Thanks XM

GF,

Found this article on ADVFN, never heard of this involvement for RAB before!

--------------------

24/06/2004

Falklands: New oil company to explore offshore area

The Falkland Islands Holdings PLC has announced that in conjunction with its joint venture partners, Global Petroleum Limited and Hardman Resources Limited, that it has reached agreement with RAB Special Situations Fund, a fund managed by AIM listed hedge fund manager, RAB Capital plc (RAB) to fund the next 12 to 18 months work on their petroleum exploration licence offshore the Falkland Islands.

The work programme includes the design, implementation, processing and interpretation of a 2D seismic survey. This follows mapping in 2003 of 4,340 kilometres of purchased seismic data, which has identified a number of leads in water depths of 400-1,850 metres. The leads comprise targets with the potential to contain 200 million to 2.5 billion barrels of oil.

Under the agreement, the Joint Venture will also be restructured forming a new company, Falkland Oil and Gas Limited. FOGL will own 77.5% of the licences with the remaining 22.5% to be held by Hardman. The shareholdings in FOGL will be RAB 45.4%, FIC 28.9% and Global 25.7%.

The Board of FOGL will comprise representatives of RAB, FIC and Global and the initial Chairman will be Dr. John Armstrong, Executive Chairman of Global Petroleum. FOGL has contracted Dampier Oil Limited, a wholly owned subsidiary of Global Petroleum, to operate the project during the seismic period.

Under the new arrangement, FOGL will contribute US$3.6 million (as a result of share subscriptions to FOGL of US$2.2 million by RAB; US$1.1 million by FIH and US$0.5 million by Global) and Hardman US$0.9 million to a new US$4.5 million survey to better detail leads in the offshore Falkland Islands licence areas.

At present, the FOGL-Hardman Joint Venture plans a 3,500km survey but this may be expanded subject to tenders received and whether a non-exclusive arrangement can be agreed with the seismic contractor.

The licences cover an area of 33,700 sq km and are located to the south and east of the Falkland Islands. No wells have been drilled in these areas. However, two wells in the adjacent Malvinas Basin to the west have flowed 3,000 bopd (Calamar-1) and 20 mmcfpd (Salmon-2) from the Cretaceous Springhill Formation whose equivalents are expected to occur in the new Joint Ventures licences.

These oil and gas flows offer support to the view that the Joint Ventures licences contain an active petroleum system within the 8,000 metres of Late Jurassic to Tertiary sedimentary section. The south and east Falkland areas are geologically distinct from the North Falkland Basin, which was the focus for oil exploration activity during 1996-98.

FOGL plans to seek an eventual admission to the UK Alternative Investment Market (AIM).

I have an indirect interest in the above through my holding in Hardman. I suppose RAB know what they are doing and Hardman certainly have a good 'nose' for oil opportunities. But I would have thought it was very long term. Is that the right place for RAB's capital?

Mind you, I have no complaints!

Old news Andy, see earlier in the thread.

TE. why dont you occupy your time in the thread you created, they could really could do with your some really sound research.........

what is it with it you? has GF done something to you? ...

just let it go and leave we, RAB shareholders to find for ourselves if we have the right decision on RAB.... time will tell.... so what if RAB goes up or down, to 30P or 1pound..... if you dont hold RAB then why is it bothering that much.

go and get some good sex... you sound frustrated and you taking it against GF

I know you would like to sweep my negative comments under the carpet xmortal, but I have as much right to a view as you do. If the stock is solid my comments will not make any difference, however the stock isn't solid as shown by the strong sell off.

What's up...want me to say 1 before Xmas? .....No chance 30p soon (based on NAV & hedge fund comments earlier in the thread).

yes..TE... whatever!!!

Well for all the abuse & name calling I have had for taking a bearish view the bid price is now just 4p away at 34p from my 30p target.

At 30p I see RAB as fair value.

xmortal,

I've just taken IanT's advice and squelched a poster I didn't want to read, it's amazing.

Huge volume yesterday, including a 3.5 million clearout. Big overhang cleared think we could see this one rally strongly right here, significantly rising this morning.

I am calling that we have seen the lows now.

Well done Angi. Hawick yes very much on line for the profits figure in August.

ps, is it worth having a dabble on Henman this afternoon?.

cheers GF

goldfinger,

IMHO no!

You were right Andy.

Theres always next year.................... yet again.

cheers GF.

Big overhang cleared?....should rise significantly upwards?.....down 0.5p.

Markets down today---give it time! RAB holders will be rewarded. TE are you still interested in NLR ? they are bouncing back now. Please post some doom and gloom as I haven't afforded to buy any yet !!!

Sorry for posting non-RAB but I have to answer your question out of courtesy...I like the growth of NLR moneyplus, but one thing nags me, foreign companies having their main listing in London, and I suppose the possibilties of new competition from big financials who want a slice. Good share to trade maybe towards the results RNS?

Thank you TE. Back to RAB now.

Haven't RAB put money into the Faulklands via a fledgling oil company of the same ilk?

They certainly go for the risky side of risk.

Yes.

rayrac,

he who dares etc etc!