Double Quick March at RAB Capital

Nick Parmee

19 January 2007

RAB Capital, the London AIM-listed hedge fund manager, has released an unaudited estimate of its results for 2006 showing a near-doubling in several key figures. Turnover for the year was £116 million ($228 million), up 104 per cent on the £56.9 million for 2005; pre-tax profits are expected to exceed £50 million (up 95 per cent on the £25.6 million for 2005). Pre-tax profits include realised investment gains of just over £12 million compared to £7.19 million in 2005 and interest income of £2.4 million (2005: £0.8 million). Assets under management as at 31 December 2006 were $5.18 billion. This is an increase of 98 per cent compared to the $2.62 billion reported for 31 December 2005. In December 2006, as reported in WealthBriefing, Lakshmi Mittal, rated by Forbes as the world's fifth richest man, pledged to invest $200 million in their flagship hedge fund and raised his stake in the company from 5.4 to 6.2 per cent through a new share issue. The new Mittal money is locked in with an agreement from the family not to withdraw within three years and to give a year's notice for withdrawals in the following two years. Philip Richards, chief executive, said: “The near-doubling of assets under management over the course of 2006, further successful investment performance and an even stronger balance sheet, give us an excellent base from which to advance in the year ahead.”