Co-founder of RAB stands aside as CEO
Philp Richards, the co-founder of troubled hedge fund RAB Capital, is stepping down as chief executive to focus exclusively on its special situations fund.
RAB shares have plunged 37 per cent in the last six months after being hit by a series of bad investments – including a significant shareholding in beleaguered Northern Rock– and a profits warning.
Richards will be replaced by Stephen Couttie, 50, who has been chief operating officer since July 2005 and finance director since April last year.
Before joining RAB Couttie was chief financial officer of Swiss Re Group’s capital markets business and before that was group finance director of investment bank Fox-Pitt Kelton.
Charles Kirwan-Taylor has been promoted from RAB’s head of sales to executive director. Richards will remain an executive director on the board.
“I am pleased to be handing over my business management responsibilities to Stephen and wish him every success in his new role,” Richards said yesterday.
RAB chairman Michael Alen-Buckley said the management reshuffle was a “sensible step”.
“It allows Stephen to take on the business leadership of RAB Capital and frees up Philip to concentrate on running his funds,” he added.
“Stephen has been chief operating officer of RAB for three years and has already demonstrated great management expertise.”
“I have every confidence that he will continue to deliver an exceptional performance in his new role as chief executive.”
KBC Peel Hunt analyst Andrew Shepherd-Baron said the boardroom shuffle would change little at the firm as Couttie had been heavily involved in managing the business for some time.
Shepherd-Baron added: “We consider that RAB’s long-term track record of performance remains attractive to its investors, but short-term fund performance needs to stabilise.”
RAB shares closed down 1 per cent.
