London hedge fund manager RAB Capital has been forced to halve its provision for bonuses, following an 18.1% fall in assets in the first half of this year and a 30.4% decline in the size of its flagship fund.

RAB Capital said it did not expect respite from the "challenging" market environment and that it had "significantly reduced" its provisions for bonuses to £10.2m, compared to £18.6m in the same period last year.