London hedge fund manager RAB Capital will face an uphill task in convincing investors in its flagship special situations strategy to leave their investments with the firm for three years, an analyst has said, after it lost 22% of its value last month.

Katrina Preston, analyst at Landsbanki Securities in London, said in a note yesterday that the $4.7bn asset manager faced a "hard sell" to convince the investors in two feeder funds - which between them hold more than 90% of the $923m (€657.5m) in RAB Capital's main hedge fund investment strategy - to lock their money in for three years in return for a reduction in fees.