Hedge firm RAB boosted by institutional inflows
LONDON (Reuters) - Hedge fund firm RAB Capital said inflows from institutional investors helped it post its first rise in assets in two years, as the industry continues to rebound from its biggest ever crisis.
The firm RAB.L, whose assets stood at more than $7 billion in December 2007 but have since been hit by outflows and performance losses, said funds under management rose 9 percent during the second half of 2009 to $1.37 billion.
Chief executive Stephen Couttie told Reuters that the firm, around half of whose assets come from high net worth individuals, was seeing net inflows from institutional investors such as pension funds, which have generally stuck with hedge fund investments more than private clients during the credit crisis.
"It (net inflows across the business) began towards the end of the first half. We're beginning to see now a bit more consistency... We're putting more effort on focusing on institutions," he said.
The firm, which has cut its costs by more than a third, said it expected a loss after tax of around 3 million pounds for 2009.
The group posted a loss after tax of 17 million pounds in 2008, though that included exceptional charges totalling almost 18 million pounds.
Couttie added that the firm was looking at small acquisitions outside its core areas of natural resources, and would consider other strategic options.
"There are one or two smaller teams and the like (that we're looking at), although our focus is on building assets.
"We would also consider any sensible strategic advancements to our cause... If someone came along with a very large cheque, it's something we'd have to think about."
At 9:25 a.m., shares in RAB were up 4 percent at 19 pence.
(Editing by John Stonestreet)
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