RAB Capital, the listed hedge fund manager, said assets under management rose by about $100 million to $1.37 billion on 31 December, and logged stronger client inflows into its funds in the second half of 2009.

In a trading statement on Friday, RAB said about 40 per cent of increase in assets was caused by net inflows. It expected to make a post-tax loss of £3 million with non-cash charges comprising a significant share of this loss.

RAB said its disposal of its northwest business and restructuring of RAB funds cut assets under management by $650 million from $1.87 billion at 31 December.

The investment manager made a number of senior management changes and restructured its fund range to cope with a number of heavy outflows suffered during the financial turmoil over a year ago.

Over the course of 2009, the disposal of the northwest business and restructuring of RAB funds had the effect of reducing assets under management by around $650 million from the $1.87 billion at 31 December 2008.

“The company has continued to improve the liquidity position in its restructured funds. In the RAB Energy and RAB Octane strategies, further distributions have been made to holders of redemption share classes, while RAB Special Situations has been successful in removing all leverage and reducing the proportion of unlisted securities from over two-thirds of the portfolio value at 31 December 2008 to nearer one-third at 31 December 2009,” it said.