Better late than never

RAB Capital has been emblematic of the many trials of hedge funds during the financial crisis.

Philip Richards, chief executive, invested its flagship Special Situations fund in Northern Rock, whose depositors queued up in September 2007 to withdraw their money, triggering the onset of the crunch in the UK. The lender was ultimately nationalised, angering shareholders. A year later RAB was hit by the collapse of Lehman Brothers, one of its counterparties. Special Sits was then hamstrung as liquidity quickly evaporated from its investments, ranging from car racing ventures to unlisted miners. Richards stepped back from corporate management duties to focus wholly on running th...