Profits at UK-based hedge fund RAB Capital will be “significantly lower” for the first half of 2008 than previously thought, the Times reports.
The comments were made at the fund’s annual meeting – where it was also announced that assets under management had fallen in value by around $1 billion since the beginning of the year.
Market volatility due to the credit crunch was blamed by RAB for this poor performance – which brings the total value of assets held down to $6.34 billion.
Following the news, shares in the fund fell by as much as 14.24% yesterday.
“Although it is too early to comment on the likely full-year outcome, on the basis of four months’ trading, our current expectation is for first half earnings in 2008 to be significantly lower than those for the first half of 2007,” RAB says in a statement.
Pre-tax first half profits for 2007 at RAB came to just over $45 million.