RAB Capital to withdraw from stock market amid investor exodus

British hedge fund RAB Capital, famed for its disastrous bets on shares in Northern Rock before the bank collapsed, today said it could withdraw its shares from the stock market amid an exodus of investors in its funds.

In a profit warning today, RAB said management's hopes for the year were now "significantly" below their previous expectations and said it was reviewing its options, including possibly de-listing of its shares.

The company also said that Gavin Wilson, who was a co-manager of its RAB Energy Fund and RAB Octane Fund, had decided to quit the company for personal reasons.

RAB Capital said on Wednesday that investors had pulled out of several of its funds, which would result in RAB's overall assets falling to a level below the company's previous expectations.

"The path for the company's return to profitability will be impaired relative to management's previous expectations and the board's outlook for the current financial year is now significantly below its former expectations," RAB said in a statement.

"The board intends to review the options for the company, including the appropriateness of maintaining an AIM listing, and the possible use of the company's surplus capital to provide some liquidity to shareholders," it added.