Hedge fund RAB Capital is launching two new Ucits-compliant funds this month.
One is a version of the existing RAB Global Mining and Resources Fund, which invests in large-cap mining and resources stocks. The fund was up in the mid-20% area in 2010, having been up 79% in 2009 and down 40% in 2008.
It will be joined by a new strategy in Ucits form, to be called the RAB Gold and Precious Equities Ucits Fund. RAB admits it thought long and hard over the strange name, “Precious Equities”, but confirms the fund will focus on companies engaged in mining gold, platinum and other precious materials.
The tilt towards mining and resources is predicated on a RAB Capital house view that we are in the first half of a 20-year super-cycle for metals and resources due to a process of urbanisation. That view is based on UN projections of a 40% increase in the urban population in the next two decades.
A Ucits version of the RAB Europe Fund is due later in the spring, which is being run in parallel with the Polaris Prime Europe Fund following the integration of the Park Place team, to be called the RAB Prime Europe Ucits Fund. There is also a fourth Ucits structure in the pipeline, to be launched later in 2011.
RAB Capital (Asia) CEO David Seex tells us that his plan is to sell these (and other RAB products) to Asian investors, and is planning a roadshow for the next few weeks.
In Hong Kong, as part of the reduction of the Asian cost base, the RAB Capital office is now comprised of himself and a few support staff. All of the remaining portfolio management teams have now left the ranch.