Statement from RAB Capital causes confusion

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The Independent Online

RAB Capital, the hedge fund manager, made a statement two hours after the market closed yesterday which caused confusion among some followers of the stock.

Although the company said it was on target to beat last year's profits, its silence on whether it would beat market expectations of £13m for the year led some to wonder if the statement was in fact a disguised profit warning.

The company, which boasts the former chancellor Norman Lamont among its non-executive directors, said it was on target to beat last year's profits of £10.2m but made no reference to the market forecast. The company also made no reference to total funds under management, crucial for its profitability.

RAB Capital floated on the Stock Exchange on 16 March this year at 25p. It warned markets in late July that the summer months had not brought in the levels of new business that they had expected. Two of its funds, RAB Europe and RAB Global Macro, are also known to have performed poorly this year and the company has given no guidance on redemptions.

A spokesman for RAB's PR company, Grandfield, said the timing of the statement was unintentional and it should in fact have been released this morning.

The shares closed at 46.75p yesterday.