Absolute return asset manager RAB Capital has announced the planned launch of a new RAB Global Mining and Resources Fund, to be managed by a team led by chief executive Philip Richards, on
Absolute return asset manager RAB Capital has announced the planned launch of a new RAB Global Mining and Resources Fund, to be managed by a team led by chief executive Philip Richards, on 21 November.
RAB Global Mining and Resources seeks to build on the firm’s acknowledged expertise in natural resources investing and its four established funds, RAB Special Situations, RAB Energy, RAB Octane and RAB Gold. The new fund’s principal focus will be on the metals and mining sectors, but its mandate extends to other types of natural resources companies and it will have the ability to hedge through futures and physical commodities.
RAB Global Mining and Resources will trade mid- and large capitalisation equities long and short, with at least 90 per cent of the portfolio invested in companies with a market capitalisation of more than USD1bn and 50 per cent invested in companies with a market capitalisation of more than USD10bn.
Richards currently manages the RAB Special Situations Fund, supported by a dedicated 22-strong team. On RAB Global Mining and Resources, he will be assisted by new hire Tiffany Essex, who was a leading member of the mining team at Cazenove.
RAB Special Situations was recently named by Barron’s magazine’s as the world’s best performing hedge fund over the three years to June 2007, with a compound average growth rate of 47.7 per cent.
The Global Mining and Resources fund will be an extension in the mid- and large-cap arena of the mining component of RAB Special Situations and will receive support from the established fund’s team. The new fund will target annual returns of more than 20 per cent, less than the 30 to 50 per cent targeted by RAB Special Situations but with lower volatility.
‘We have considerable expertise, and an outstanding track record, in resources investing,’ says RAB executive chairman Michael Alen-Buckley. ‘Launching RAB Global Mining and Resources is a logical progression and comes at a time when the sector is becoming ever more important for the worldwide investment community.
‘Structural changes in the world economy, in particular the relentless commodities demand from China, and worldwide urbanisation, are driving the current commodities super-cycle, and so far the supply response has been inadequate. Philip Richards and his team will focus on high conviction long/short positions in the large capitalisation mining names to extract alpha through analysis of fundamental, technical and valuation factors.’
Founded in 1999, RAB Capital has developed into a global absolute return asset management firm with USD7.1bn in assets under management at the end of September. RAB Capital currently manages 15 absolute return strategies (13 single-strategy and two multistrategy) each with assets exceeding USD100m as well as the AIM-quoted RAB Special Situations Company.