Dexion Capital Plc and ABN AMRO are preparing for the launch of a London listed fund of hedge funds advised by FRM Investment Management.
The launch of the new FoHF, Dexion Trading Limited, follows the success of Dexion Capital's previous listed FoHFs, Dexion Absolute Limited and Dexion Equity Alternative Limited (see previous Hedgeweek Interview with Dexion's Robin Bowie).
Dexion Trading Limited, is expected to invest approximately 80% of its assets in directional trading strategies and approximately 20% in relative value strategies.
It is anticipated that the fund will target USD annualised returns of between 7% and 12% (net of all fees) and annualised volatility of less than 9%, in each case over any 3 to 5 year period with little or no correlation to traditional equity benchmarks.
It is proposed that FRM Investment Management Limited (FRM) act as the Investment Adviser. FRM is one of the largest fund of hedge funds groups with over USD10 billion under discretionary management.
Dexion Trading's initial investment strategy will aim to be broadly consistent with FRM's Absolute Alpha Opportunistic Fund.
Launch is expected to take place in late November.