RAB Energy duo dig deep to extract value, bounce back from 2008 blow
Wed Jan 26, 2011
An overhaul of their hedging and investment strategy has enabled Gavin Wilson and Mark Redway to bounce back from a big drawdown in 2008 – focusing the fund more explicitly on drilling ‘events’ in the oil and gas sector and reducing its exposure to big market movements and the oil price
Of all the long/short equity funds that suffered most in the
downturn of 2008, very few have bounced back quite as swiftly
and spectacularly as RAB Energy - the event-focused oil and gas
sector strategy run by long-standing industry specialists Gavin
Wilson and Mark Redway.
Gavin Wilson and Mark Redway
Having produced excellent returns from its launch in
mid-2004 to mid-2007, the fund came a cropper in 2008 as a
result of an array of adverse factors - including a steep fall
in the oil price, collapsing financial markets in the latter
part of the year, a flood of investor redemptions and severe
liquidity issues that were sharply exacerbated by the
portfolio's illiquid investments.
The result was a situation that Wilson and Redway describe
as "horrible" - involving a painful loss of some 60% for
investors in 2008 and a severe depletion in the size of what
had until then...
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