RAB Capital admits errors as 79% of investors exit Special Sits

RAB Capital says it "made mistakes" in the run up to the financial crisis as it reveals the majority of investors will exit its Special Situations fund when it reopens after a three-year suspension.

The group says in a stock exchange announcement it expects 79% of investors to exit the fund in October when it reopens for subscriptions and redemptions. It has been closed since 2008 when shareholders voted in favour of a three-year lock-in being introduced to enable the fund to restructure. The fund, which was invested in early stage natural resources companies, ran into difficulty during the credit crisis and the subsequent lack of liquidity in markets. Philip Richards, co-founder of RAB Capital and manager of the fund, says: "We made mistakes in the run up to the crisis and th...