Dexion Capital and ABN AMRO plan LSE-listed fund of hedge funds
Dexion Capital Plc and ABN AMRO are in the initial stages of preparing to launch a fourth London Stock Exchange-listed fund of hedge funds advised by RMF.
The launch of Dexion Alpha Strategies Limited, a new closed-ended investment company, follows the success of Dexion Absolute Limited (Dexion Absolute is the world's largest exchange-traded fund of hedge funds), Dexion Equity Alternative Limited and Dexion Trading Limited.
The new launch will focus on areas of alternative investment where alpha is not yet widely extracted by hedge funds, with the company expected to invest in a diversified portfolio of hedge funds capable of exploiting opportunities in developing asset classes and/or sectors including energy and emissions, commodities, emerging markets and senior secured loans.
RMF Investment Management Limited (RMF), one of Europe's leading providers of alternative investment solutions with alternative assets under management of USD 19.6 billion, including USD 16.8 billion in funds of hedge funds, will act as investment adviser when the fund launches in late March 2006.
'A number of 'traditional' hedge fund strategies have become increasingly crowded as a result of strong asset flows over recent years, which has led to downward pressure on returns,' says Robin Bowie, CEO of Dexion Capital Group. 'This new company aims to invest in both 'new' and developing asset classes where an innovative skill-specific approach can generate significant alpha for investors. RMF has a strong track record of identifying, researching and exploiting emerging sources of alpha.'
Dexion Capital Plc was established in 2000 and researches, develops and markets hedge fund products to an international institutional investor base. The cornerstone of the business is an in-depth knowledge of the fund of hedge funds universe and a proprietary database of approximately 550 fund of hedge fund managers/groups and 1500 products. Dexion Capital Plc is authorised and regulated by the Financial Services Authority.
Dexion Capital (Guernsey) Limited, established in 2002, manages c.USD1.3 billion in exchange traded funds of hedge funds: Dexion Absolute Limited (launched Dec. 2002, advised by Harris Alternatives LLC, diversified across alternative investment strategies, assets under management USD887mn); Dexion Equity Alternative Limited (launched Apr. 2004, advised by K2 Advisors LLC, also diversified but more focused on hedged equity, assets under management USD 235 million) and Dexion Trading Limited (launched November 2004, advised by FRM Investment Management Limited and investing principally in trading strategies, assets under management USD 145 million).
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