RAB calls for three-year lock-in

hedge funds

Special Sits manager Philip Richards regrets poor performance and warns of losses

Hedge fund firm RAB Capital is trying to lock in investors to its underperforming $1.4bn Special Situations strategy for a further three years. The move comes after a tough period for its flagship Special Situations fund, which is down 48% this year following unsuccessful bets on small-cap mining stocks and Northern Rock. Assets under management have plummeted from $2bn at the end of December to $923m today. Under the proposals, investors will not be able to get their money back until October 2011. Currently, they can pull assets out quarterly after giving 180 days' notice. In ret...