calm before the storm, page-20

RAB Special Situation Fund is bleeding and their chief is under pressure to turn things around.

Even after getting a belting in the market, its size is about $5.6 Billion. Its investment in RCH (About $2M) is extremely small and probably woudn't rate a mention inside the fund.

Business as usual I would think. In fact once this bloke stabilizes redemptions, he'll probably do the old fund manager trick of getting into the market of all their illiquid stocks like RCH (they liked junior mining stocks so they probably have a trcuk load accross the globe) and buying a few just before the end of each reporting period (quarterly) to make it look like they are gaining in value.

If they try to liquidate such stocks their 38% year to date loss will turn into a blood bath and that leads to further redemptions.

So I dont think their will be any change and if their was they would be in touch with the Purple Circle who appear very matey with this fund manager, to find a new home for the holding but for that to happen they would need to take a big haircut on price which gets us back to the impact on fund returns.