RAB Capital, the UK-listed hedge fund manager, has increased assets under management by more than half for the third year in a row since going public in 2004, despite a shortfall of interest in its quoted special situations feeder fund.

Assets under management rose 69% from $4bn (€3bn)m at the end of June 2006 to $6.7bn, according to RAB's interim results. This will increase to $7bn once the acquisition of Pi Investment Management, the Asian hedge fund manager it agreed to buy last month, has been finalised.