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

hello. here are some charts which may also help us to see where RAB may be going. I think in all honestly the whole market (even for the spec shares RAB holds) will do nicely at least until the run up of the US elections. Remember when the tide rises, it carries all boats!! See what u think GF?

And this is our benchmark.... see how EMG and RAB have similar trends. Remember that Hedge Funds don't do well in sideways markets. Hopefully the next several months will pay off

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Made a bit of money out of trading in & out of this one but now I'm going to leave it alone because this time I just don't know where it's going.

Can anyone advise on the 1m traded at 30.75p yesterday morning? Thanks.

I cant believe how RAB charts follows so closely EMG!!! patience with this one investors. Here are some news related to RAB. See one of the comments on a equities rally before year end, which ties nicely with the USA precidential elections. Make up your own mind:

Commodities favoured as hedge funds set out their stalls
Tue 21 September, 2004 08:57

By Steve Hays

MONACO (Reuters) - Commodities-related investments have taken centre-stage at a major hedge fund conference in Monaco, with managers laying out their favoured strategies.

Hedge funds are credited with playing a large part in the rally in commodities markets, particularly in oil, and are also estimated to account for around 30 percent of total trading volume in equities markets.

"After 20 years of underinvestment, commodities are offering huge opportunities and IRRs (internal rates of return) of 45 percent," Philip Richards, chief executive of RAB Capital said on Monday.

He was speaking at the Information Management Network's High-Performance Investing Symposium.

Richards said RAB's funds were generating extremely high returns by focusing on companies with world-class underlying assets, but which were very undervalued by the equities market.

He cited the example of South African Resources, a South African platinum producer which he said had had management problems and required an extensive work programme to extract the value from its 50 million ounces of inferred metal reserves worth $50 billion in-situ.

RAB had bought 25 percent of the company at 2 sterling pence per share and later sold its stake on at 12 pence, he added.

Other companies RAB has large stakes in include Asian energy which is developing a big coal mine in Bangladesh and Falkland Oil and Gas, which has licences to explore for energy resources in a large area of the South Atlantic, Richards said.

Kevin Harrington, director of research at Clarium Capital Management, said his company was focusing on taking out long positions at the long-end in crude oil futures contracts a couple of years out, which avoids the volatility in nearby contracts.

These positions have shown a steady appreciation in the last two years, he added.

Hedge funds are also carefully studying the impact of high oil prices on Russian stocks and William Browder, manager of the Hermitage Fund -- the largest investment fund in Russia with $1.2 billion in assets -- predicted a sharp rally in equities before year-end.

"Russian stocks are up 3 percent and the oil price is up 35 percent, yet oil and gas make up 75 percent of the Russian stock market. The great oil boom hasn't hit because of the Yukos situation."

Browder said he believed Yukos had now been priced into Russian equities, which are very cheap trading at six times earnings, and with large liquidity being held out of the market in low or even negative yielding assets, it is likely this money would return to shares soon.

Renee Haugerud, chief investment officer at the Galtere International Fund, said her company was basing its trading strategy on its outlook for what it called "inverse stagflation" where it saw stable to falling interest rates and equities, and inflation in commodities prices.

She said such a scenario could still be positive for China, where huge demand for raw materials has played a large part in the rallies in commodities markets, if the Chinese revalued the yuan upwards against the dollar.

Such a revaluation would offset the rise in dollar-priced commodities, when prices for China's finished goods exports are stable or falling, Haugerud said.

Friday saw good trade volume on this share, with good positive price move of 9%.Would anyone know why?

here is our benchmark doing well. Positive news I feel for RAB too.

Man Group, the alternative investment products and agency brokerage, said it has made good progress in the first half of the year, adding that it is confident of continued significant growth in underlying earnings for the year.

In a pre-close trading update, the company said client money raised in the six months to September was around $7bn, 38% from private client product and 62% from institutional product.

CEO, Stanley Fink, said funds under management as at today's date are estimated to be $39bn, up from $38.5bn at end March, after taking into account the maturity of a major legacy account at RMF.

Net management fee income pre-goodwill will be up by over 30 pct in the first half, reflecting the increased level of funds under management, while net performance fee income before goodwill will be about half of the level of the first six months of last year, reflecting the weaker first quarter performance at AHL.

Brokerage net income before goodwill, excluding prior year exceptional items, will be up over 20% due to continued organic growth, underpinned by a diversified product offering and a wide geographical presence across all key markets.

Fully diluted underlying earnings per share are expected to be up by about 25%.

Man Group will announce its interim results on November 4th.

Shares in Man Group were reiterated a 'buy' at Merrill Lynch after the fund manager group issued what the broker described as an 'extremely confident' pre-close trading statement, dealers said.

The broker said Man is confident of significant growth in underlying earnings for the year, which it reads as setting a floor of 20% EPS growth in dollar terms, which equates to at least 95p per share.

Merrill said funds under management, at around $39bn, are around $1bn ahead of its own expectations. The US broker stuck to its 2,220p price target.

hello, well we are having a good run this week, only today 13% up. Also MAN group is having a good run this week due to a bid rumour. Still like we said, hedge funds do good in bull or bear markets, and RAB is having a good slice of it. The market is running up and will continue to do so at least till year end. We can again think of 1 pound Dec. What do you think GF? or have u sold your shares.

I am also in MAN and bought b4 last week. Doing nicely.

Hi guys now going up nicely. Fingers crossed we have got rid of the Germans LOL.

cheers GF.

I almost forgot that nuisance, first degree deramper, I bet he got in when RAB reached 25P. Such a two faced poster!

some informative posts,cheers!only been holding for a week or so.
with faulklands oil and gas floating on the 14th(thurs)and RAB having a 40% stake,does anybody have any views of where this will take us?i here from another board they have been over subscribed 10x.

alderleyedge,

x10?

i wonder whether they will cut back the small punter's shares, or the big boys, or a bit of both?

Superb news for RAB, i can't help feeling we will challenge 50p this week.

aimtrader
after todays comments in the telegraph and times(sorry i dont know how to cut and paste),50p may be short lived.
it could also be that an announcement may be made this week for falklands minerals to float,and RAB owns 45%.
on the back of falklands oil and gas floating this week, where's this really going. and a quid by when???????????????

Good tip on wats hot saying buy RAB, this should boost the share price eventually.

moneyplus,

Here's the article, which is sent as an open email, so no copyright issues here IMHO.
---------------------------------------------

Buy RAB Capital at 39p
argues Bill Johnston of WatsHot.com

There has been much hype about the various plays on Falkland Islands oil exploration. Frankly backing any of these pure plays is a total and utter punt - just as it was a few years ago the last time this sub-sector was in vogue. Those backing the Falklands explorers then did their conkers. This time it may be different. Who knows? If I had to bet (and this is a bet not an investment) on an oil explorer for Falklands potential I would go for Hardman Resources (HNR) at 90p, which has significant acreage in penguin land but also some cracking assets elsewhere around the world. If the Falklands flies, Hardman will be re-rated. If it does not I suspect that Hardman will be re-rated for other reasons.

But there is a cuter way to play the Falklands game and that is via RAB Capital (RAB) - the hedge fund. 'Gunslingers' they used to call them - Hedge Funds that is - and the image persists, that of smart, ruthless and powerful money managers; when it comes right down to it. It's not quite cricket, nothing actually wrong, but, you know a bit iffy, certainly in contrast with the open countenances of the conventional City chaps running unit trusts and other types of managed funds.

It was only this year RAB Capital (RAB) burst onto the AIM scene - but its reputation for canny investment preceded the flotation by many years. The company, which raised 8 million at 25p - and saw its share price advance to 40p - had launched its first fund in 1999, and, in the year to November 2003, delivered the latest figures in its unbroken advance since then - income of over 23 million, pre-tax profits of over 10 million, net assets of round about the same, and 4 million net cash in the bank.

The term 'hedge funds' now appears to cover two distinct but related elements. The first of these is that such fund managers seek - and utilise - freedom to range across geographical as well as asset-classification boundaries, including the wilder shores, short selling and derivatives, for example - and it can leverage funds under management as well. And the second element is the commitment to absolute returns - and a compensation structure geared to their investment performance.

There were nine discrete main funds, ranging from conventional equity investment in conventional markets, through bonds, currencies, and commodities. More are at the planning stage. There is a 'fund of funds'. RAB invests in other well managed funds, and distributes the investment products of others. Crucially, the company invests its own capital in its own funds. But the surging earnings come from the money that it so successfully manages, more than $1 billion at flotation date. Institutions, it says, together with private banks, high net worth individuals, foundations and charitable trusts comprise its key client relationships.

"Bill - Thank you for Coutts Holdings - you tipped it at 104p on August 25th, three weeks later a cash bid at 150p! That is what I call a hot tip! Keep them Coming" - RW, Oxon

Now RAB, freshly armed with additional capital (which on the face of it, is scarcely required) has one corporate eye firmly fixed on the retail market, with the same basic models in mind, subject of course to regulatory requirements. But the six-month figures to June 2004 saw the company more than double its income, to 5.4 million; make an operating profit of 900,000; double that sum by means of a gain on disposal; top the 2 million pre-tax barrier by means of interest generated; and net a diluted interim earnings per share figure of 0.32p. The second quarter, said the report, was tough, and full year prospects require a vibrant second half - like that of 2003 - to bring home the bacon.

However RAB Capital has played the oil and mining sector superbly. Buying heavily before mining was hot and selling heavily earlier this year as the suckers poured in. In recent months it has invested heavily in a number of promising start-ups at the pre IPO stage. Over on Ofex there was Everfor Diamonds which IPO'd last week making a very large (albeit paper) gain for those such as RAB who backed it pre IPO. And RAB also owns 30% of Falkland Islands Oil & Gas which is now valued at 12 million pounds. That is some stake.

Now RAB has a track record of calling the resources sectors correctly. It is perhaps not what one invests in a hedge fund for but it is a good reason to invest in RAB. I would expect to see my confidence more than justified when RAB published its next set of numbers. At 39p RAB is valued at 137 million. At the half year its Funds Under Management were 1.5 billion dollars. The market cap to FUM ratio looks high but given the dramatic growth I foresee for the second half of 2004 I suggest that the Christmas 2004 ratio will be far more attractive. If RAB has once again called resources stocks correctly the shares will indeed be cheap. RAB is a buy - with Falklands upside - at 39p.

Thanks Andy very encouraging.

Still in this one and havent sold a pennys worth despite the idiot on advfn who says I have. LOl LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL. Nicely up aswell.

Great to be on a first class bulletin board with first class posters all around, and nice to see no more idiots spoiling the board.

Many thanks to Ian and the big cheese.

cheers GF.

Nice big buy from one of the directors recently--time to top up some more I think.

Hi RAB holders,

Well I assume all of you have sold back in summer, but I hold tight to this little gems, as well as EMG. In both I am making virtual profits but will hold at least RAB for a long time which will defo delivered, contrary to that stupid, rude, third eye, a nasty de-ramper (who probably got it at the mid 20's level. Anyway I am so glad he is gone. Ahh and notice RAB is regulated and authorised by the FSA (see bottom of RSN) Enjoy the ride tomorrow morning.

Company RAB Capital plc
TIDM RAB
Headline Trading Statement
Released 18:33 18-Nov-04
Number 4201F



RNS Number:4201F
RAB Capital plc
18 November 2004


RAB CAPITAL PLC - CONFIDENTIAL UNTIL RELEASED

TRADING UPDATE - 19 NOVEMBER 2004


The Board of RAB Capital plc is pleased to announce that the business has so far
progressed well during the second half of 2004, after the difficult summer
period reported in the interim statement of 28 July. As a consequence, pre-tax
profits for the full year to 31 December 2004 are expected to exceed those of
the last full financial period, which ran for 13 months to 31 December 2003.

The greatest contributions to this performance have come from the Special
Situations, UK, Energy and High Yield Bond strategies, whilst Global Macro has
found trading conditions difficult. The RAB Energy Fund, which was launched in
June this year, has now passed the important milestone of $100 million of assets
under management.

Mark Fawcett (ex-ABN AMRO, American Express Asset Management and Gartmore)
joined the Company in November, to work with Nick Reid as a Senior Fund Manager
on the RAB Japan strategy. We have also developed a new, Emerging Europe
strategy, which will be managed by Leila Kardouche and Pavel Kolouch (both ex-
Schroders), and we plan to launch the RAB Emerging Europe Fund in mid-December.

We continue to work on further development of the business and have reached
agreement to recruit managers for an Energy Commodity Fund, which will invest in
commodity derivatives with a particular focus on Energy-related investments.

Notes for Editors - RAB Capital plc

RAB Capital is a London based investment management company, founded in 1999.
The Company floated on AIM in March 2004.

RAB Capital specialises in absolute return funds and as at 30 June 2004 had
approximately $1.48 billion of assets under management. The Company currently
manages nine hedge fund strategies; Europe, Special Situations, High Yield, UK,
Global Macro, Fund of Funds, North American, Japan and Energy. RAB Capital also
provides advisory and distribution services within the hedge fund industry.

RAB Capital's philosophy is to find highly talented investment managers and
provide them with an environment where they can successfully dedicate themselves
to running focused investment strategies. Core strategies focus on capital
preservation and consistent absolute returns. RAB Capital has 53 employees, 25
of whom are investment professionals.

RAB Capital plc is authorised and regulated by the Financial Services Authority.

For more information contact:

RAB Capital plc
Michael Alen-Buckley 020 7389 7000
Philip Richards 020 7389 7000

Grandfield
Marc Popiolek 020 7417 4182
Samantha Robbins 020 7417 4181




This information is provided by RNS
The company news service from the London Stock Exchange

END

Good news for all those who kept faith---onwards and upwards!!