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

thirdeye = shorter.

RAB is a quality share with great potential. Give it time and it will make you money. Just dont expect results over night, things never go up in a straight line. Like Invisage has said short term 2 months should see 1 easy, 12 months 2. But DYOR and you will see this companys potential.

See Ya

Yeah saw all the predictions of 1.50 for YOO.

1 easy....well explain the fundamental reasons why, fair value after 1 year of bull market phase on AIM was 25p, explain why it should be worth 200m nearly.

RNS Number:7713X
RAB Capital plc
20 April 2004

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN, INTO OR FROM THE UNITED STATES,
CANADA, AUSTRALIA, REPUBLIC OF IRELAND OR JAPAN

20 April 2004RAB CAPITAL PLC ('RAB CAPITAL')

RECOMMENDED OFFER BY KBC PEEL HUNT ON BEHALF
OF RAB CAPITAL FOR I2S PLC ('I2S')

Offer declared unconditional in all respects

On 15 April 2004 the board of RAB Capital announced that the Offer had become
unconditional in all respects subject only to the admission of the New RAB
Capital Shares to AIM becoming effective ('Admission'). Admission became
effective at 8.00 a.m. today and accordingly the Offer is now unconditional in
all respects.

As RAB Capital now either owns or has received valid acceptances in respect of
in excess of 90 per cent. of the I2S Shares to which the Offer relates, it
intends to commence the necessary procedures under sections 428 to 430F of the
Companies Act 1985 to compulsorily acquire any outstanding I2S Shares to which
the Offer relates and in respect of which valid acceptances have not been
received.

I2S will today apply to the London Stock Exchange for the cancellation of the
admission to trading of I2S Shares on AIM. It is anticipated that such
cancellation will take effect from 8.00 a.m. on 19 May 2004.

A resolution will be proposed to re-register I2S as a private company under the
relevant provisions of the Act as soon as practicable after such cancellation.

As already stated, the Offer will remain open until further notice.

I2S Shareholders who have not yet accepted the Offer are urged to do so as soon
as possible. I2S Shareholders who wish to accept the Offer should complete the
Form of Acceptance enclosed with the Offer Document and return it, together with
supporting documents, to the Receiving Agent, either by post or by hand to
Computershare Investor Services PLC, POBox 859, The Pavilions, Bridgwater Road,
Bristol BS99 1XZ or by hand (only during normal business hours) to Computershare
Investor Services PLC, 7th Floor, Jupiter House, Triton Court, 14 Finsbury
Square, London EC2A 1BR as soon as possible.

Expressions used in this announcement shall, unless the context otherwise
requires, bear the same respective meanings as in the Offer Document posted to
I2S Shareholders on 17 March 2004.

Enquiries:

KBC Peel Hunt Ltd
Tel: 020 7418 8900
Simon HayesJonathan Marren

Grandfield
Tel: 020 7417 4170
Marc Popiolek

KBC Peel Hunt Ltd, which is regulated in the United Kingdom by the Financial
Services Authority, is acting exclusively for RAB Capital and no one else in
connection with the Offer and will not be responsible to anyone other than RAB
Capital for providing the protections afforded to customers of KBC Peel Hunt Ltd
or for providing advice in relation to the Offer.

This announcement does not constitute an offer to sell or invitation to purchase
any securities or the solicitation of any vote or approval in any jurisdiction.

The release, publication or distribution of this announcement in certain
jurisdictions may be restricted by law and therefore persons in such
jurisdictions into which this announcement is released, published or distributed
should inform themselves about and observe such restrictions.

The Offer is not being made, directly or indirectly, in or into, or by use of
the mails of the United States, Canada, Australia, the Republic of Ireland or
Japan, or by any means or instrumentality of interstate or foreign commerce of,
or any facilities of a national securities exchange in, the United States,
Canada, Australia, the Republic of Ireland or Japan (including, without
limitation, facsimile transmission, telex and telephone). Accordingly, this
announcement and any copies of the Offer Document and the Form of Acceptance and
any relating offering documents are not being, and must not be, mailed orotherwise
distributed or sent in, into or from the United States, Canada,
Australia, the Republic of Ireland or Japan including to Overseas Shareholders
with registered addresses in the United States, Canada, Australia, the Republic
of Ireland or Japan or to persons who RAB Capital knows to be custodians,
trustees or nominees holding I2S Shares for such persons. Persons receiving such
documents (including, without limitation, custodians, trustees and nominees)
must not forward, distribute, sendor mail them in, into or from the United
States, Canada, Australia, the Republic of Ireland or Japan or use the United
States, Australian, Canadian, Irish or Japanese mails or any such means,
instrumentality or facility for any purpose, directly orindirectly, in
connection with the Offer, and so doing will invalidate any related purported
acceptance of the Offer. Persons wishing to accept the Offer must not use the
United Stares, Canadian, Australian, Irish or Japanese mails or any such
means,instrumentality or facility for any purpose directly or indirectly related to
acceptance of the Offer. Envelopes containing Form(s) of Acceptance should not
be postmarked in the United States, Canada, Australia, the Republic of Ireland
or Japan orotherwise despatched from the United States, Canada, Australia, the
Republic of Ireland or Japan and all acceptors must provide addresses outside
the United States, Canada, Australia, the Republic of Ireland and Japan for the
remittance of consideration or the return of Form(s) of Acceptance, share
certificate(s) and/or other document(s) of title and RAB Capital will not be
obliged to remit or return the same until such address is supplied.

RNS Number:8160X
RAB Capital plc
20 April 2004
FORM SAR 3

Lodge with a RIS or Newstrack if appropriate and the Takeover Panel.
A copy must also be sent to the company the shares of which are acquired.

Date of disclosure 20 April 2004

DISCLOSURE UNDER RULE 3 OF THE RULES GOVERNING
SUBSTANTIAL ACQUISITIONS OF SHARES ("SARs")

Date of acquisition
16 April 2004

Acquisition in (name of company)
Cambridge Mineral Resources

1. Class of voting shares (eg ordinary shares)
Ordinary

Number of shares/rights over shares acquired

2,900,000 Shares........................Rights

If rights over shares acquired, as opposed to the shares themselves, specify
nature of rights
...............................................................

2. Resultant total holding of voting shares (and % of total voting shares in
issue)
35,611,783 26.3%

Resultant total holding of rights over shares (and % of total voting shares in
issue)
.......... ..........%

Total percentage
.......... 26.3%

3. Party making disclosure
RAB Capital plc

4. (a) Name of person acquiring shares or rights over shares
RAB Capital plc as investment manager

and, if different, beneficial owner
RAB Special Situations LP & RAB Europe Fund Ltd

(b) Names of any other persons acting by agreement or understanding (see SAR 5)
WPS Richards as fund manager

Signed, for and on behalf of the party named in (3) above
...............................................................

(Also print name of signatory)
Christopher de Mattos

Telephone and extension number
Neil Warrender - 020 7389 7015

Note. Under SAR 5, the holdings of and acquisitions by persons acting by
agreement or understanding must be aggregated and treated as a holding of or
acquisition by one person. Note 3 on SAR 5 requires persons who must aggregate
holdings to disclose certain disposals.

For full details of the SARs disclosure requirements, see Rules 3 and 5 of the
SARs. If in doubt, contact the Panel on Takeovers and Mergers, Monitoring
Section. Tel. No: 020 7638 0129.
Email:monitoring@disclosure.org.uk


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

First ever hedge fund to enter AIM
Trading has exceeded directior expectations
1200%+ Return on Special situations fund
Only 34mil shares in Public hands
Directors own 90% of the shares
Pays a 0.25p dividend
Company is thinking of buying back upto the 10% of the shares held in public hands in the future
Company is looking to invest in japan, where the economy is booming. And energy.
Company is looking to recruit more fund managers and open more funds.

So how much will this make then?

30m before tax say 21m after tax (@30%) ?

I might buy some if so.

I see you are back snapping at gfs heals again ThirdEye the YOO thread must have cost you dear to keep on about it all the time.You cannot get them all right.Even shares mag recomended Mayflower now look at it.I for one think this stock is a good punt and a good one to have in your portfolio.Mining stocks seem to be on a roll at the moment and all the boards are buzzing with them the world is hungry for commodities as china and asia are on catch up with their economies.Like the dot coms these stocks are going to be the next thing. Ok we might see another bubble forming,but what the heck we are here to make a buck are,nt we.So set a stop loss and stick to it and you can,nt go wrong.

So anyone wan't to offer how much they will make? No one seems to want to answer.


(I didn't invest in YOO just watched the hype with interest)

invisage,

I think it's a bit naive to accuse everyone with a contrarian view as a shorter.

He simply sees the stock in a differerent way to you, and that contributes to a healty stock market, IMHO.

Thanks Andy, I am not short as it happens, just trying for some healthy debate, the longs prefer to accuse me of this that & the other.....whereas their best response would be a constructive reasoned bull case!


So how much are they likely to make in relation to their market cap?

ThirdEye its all dependant on how well the companies they have invested in perform.So far they have made all the right moves and from what i have read they seem to know what they are doing.At least by investing in rab you have not got all your eggs in one basket.Buying shares is a form of betting i like the odds on this one.

But surely to buy you must have an idea of rough profits before tax you would like to see?

5m, 10m, 30m?


And the figure you have, does it warrant the market cap, or buying price?


I buy a share as if I'm buying the company, ie pro-rata in fact I am, so I would want a good return if I was investing (pro-rata) 200m....or well a bit less than that after the falls of the last couple of days.

First ever hedge fund to enter AIM
Trading has exceeded directior expectations
1200%+ Return on Special situations fund
Only 34mil shares in Public hands
Directors own 90% of the shares
Pays a 0.25p dividend
Company is thinking of buying back upto the 10% of the shares held in public hands in the future
Company is looking to invest in japan, where the economy is booming. And energy.
Company is looking to recruit more fund managers and open more funds.

cheers GF.

Still no one tells me how much it is likely to make, to justify the mkt cap.

First ever hedge fund to enter AIM
Trading has exceeded directior expectations
1200%+ Return on Special situations fund
Only 34mil shares in Public hands
Directors own 90% of the shares
Pays a 0.25p dividend
Company is thinking of buying back upto the 10% of the shares held in public hands in the future
Company is looking to invest in japan, where the economy is booming. And energy.
Company is looking to recruit more fund managers and open more funds.

cheers GF.

Hang on a second Third Eye Ill just get me crystal ball !!!!!!!

Nice one Planttec, I can tell you this, thirdeye is not very clued up about hedge funds. He doesnt seem to understand the industry and the secrecy surrounding it.

He is very good with small companies(well he says he is) though unquoted ones and keeps advertising a share site on this board he as a personal stake in, yes and hes getting away with it free.

Yes free advertising, I wish I could advertise my business free on this board.

cheers Gf.

Very happy with my RAB holding and appreciate your research. What is your business GF?

Industrial Cleaning and Property maintenance, throught the nort of England.

cheers GF.