RAB to Close Funds as Industry Regroups

Hedge-fund manager RAB Capital PLC added to the sector unrest Friday, saying it will close several funds. The London-listed manager said it expected assets under management to fall to $2 billion by the end of December from $7.24 billion a year earlier.

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RAB said it will close three subscale regulated funds, those designed to attract conventional "retail," or individual, investors, rather than richer "high net worth" ones. This ends the company's plan to build a retail business, which was at an early stage.

It will also close a number of smaller hedge funds. Included is its only fund with prime-broker exposure to collapsed U.S. investment bank Lehman Brothers Holdings Inc.