The Implosion Of Former $7 Billion RAB Capital Is Almost Complete

Gavin Wilson and Mark Redway

Almost immediately after top performer Gavin Wilson (left) announced his retirement from RAB Capital, the fund has been forced to consider de-listing after 4 years of being a public hedge fund.Wilson was part of the two man team that earned 42.9% returns in the $250 million RAB Energy fund last year (as of December 22, 2010), the best hedge fund returns on HSBC’s ranking at the time.

The fund was up 46% for 2010, and 86% in 2009, according to the Financial Times.

Now that he will be gone, says Citywire UK

Shares in RAB Capital have plunged 24% after the company issued a gloomy warning to investors claiming its days as a lsted company are numbered.

Redemptions are flooding the firm, according to the Financial Times. After peaking at $7 billion 2007, the fund was down to $1 billion in the beginning of the year. And now –

Investors pulled $370m from RAB’s flagship $470m Special Situations fund last month when a three-year moratorium on withdrawals finally expired.

What’s next? If it’s anything like what happened when the top portfolio managers left Gartmore, an acquisition is coming soon.

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