Behind every billionaire there is a story!

Lakshmi Mittal loses $200 million in hedge fund investment

Less than 18 months ago, Lakshmi Mittal, the billionaire businessman who made his name forging the world’s biggest steelmaker, deepened his relationship with RAB Capital. His pledge to invest $200m in RAB’s Special Situations fund last May, compounded by a 10 per cent shareholding in the Aim-listed hedge fund group, means the respected head of ArcelorMittal is sitting on a big paper loss.

But for one of the world’s richest men, with a net worth estimated by Forbes magazine to be $45bn (£26bn), the 48 per cent slump in the Special Sits fund this year and the 66 per cent fall in the RAB share price will not make much of a dent.

The most valuable asset in the Indian born, British-based steel magnate’s investment portfolio is his 43 per cent stake in ArcelorMittal. Although the stock has fallen more than 36 per cent from its June high, the shares are still worth some €26.5bn (£21bn).

Other equity holdings include a 50 per cent stake in Caspian Investment Resources, a Kazakhstan oil group that one of Mr Mittal’s investment vehicles acquired in 2006 for $980m, as well as a 17 per cent stake in Platmin, the London and Toronto-listed platinum miner, worth £57m at current market prices.

read the rest published by FT here:

http://www.ft.com/cms/s/0/4967cadc-7f99-11dd-a3da-000077b07658.html