RAB Capital increases assets under management
29 Jul 2005
RAB profits double in first half.
Hedge fund firm RAB Capital increased assets under management by nearly 30 percent in the first half of the year and increased pretax profits by 140 percent compared with a year ago, Reuter reports.
Profits rose to £5.1 million in six months of the year, more than half in the same period last year. Assets under management at the firm have risen to $2.26 billion (£1.29 billion) in the first half of the year RAB announced today.
Tej Randhawa, analysts at Evolution Securities, said the results were solid particularly in terms of accrued performance fees. Accrued performance fees are more than five times the level at this time last year.
RAB said the acquisition of Cross Asset Management at the end of June added $247 million to assets under management.
The company booked some performance fees as well.
RAB’s stock was up 4.3 percent at 69.1 pence earlier this morning.
RAB raised the interim dividend to 15 pence from 10 pence, and diluted earnings per ordinary share (EPS) jumped 107 percent in the first half of the year to 93 pence.
Analysts said the EPS appears to be growing at around 25 percent per year but that the stock would probably continue to trade at a discount because so much depends on performance.
Randhawa said tha first half is always weaker for hedge funds becasue they don't book performance fees until the end of the year.
RAB said trading varied in the first half from being very good in the first quarter but more difficult in April and May.
RAB's flagship Special Situations fund had assets of $551 million at the end of June, up from $416 million at the end of December. The RAB Global Macro fund has been discontinued.
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