Investors are seeking to withdraw almost $400m from RAB’s $500m Special Situations fund, three years after harmful losses forced it to restrict redemptions.
The fund slumped 73% in 2008, hurt by a bet on Northern Rock, the first British bank nationalized during the credit crisis.
RAB won investor approval to halt redemptions in September 2008. The fund declined 7.6% in 2010.
RAB Capital said that the level of redemptions is in line with expectations and that it would be able to pay clients in full.
The impact of these redemptions on the fund’s revenue for 2011 relative to 2010 will be equal to approximately -5%.
The hedge fund once held assets under management of more than $7bn, yet controlled just $1.1bn last year.
The withdrawals will leave RAB with just over $600m under management.
