Dexion Absolute Limited, the fund of hedge funds, has announced plans for further fund raising on the back of strong performance.
Dexion Absolute Limited is a Guernsey registered, closed-ended investment company listed on the London Stock Exchange. Trading in the Company's shares commenced on 19 December 2002. Dexion Absolute currently has US$57.9 million in assets under management.
The Board of Dexion Absolute Limited announced that further to the strong asset performance in the period since the Company's launch in December 2002 (estimated NAV of 105.83p as at 11 July 2003, up 7.7 per cent since launch), and against the background of ongoing secondary market demand which has resulted in the Company's ordinary shares consistently trading at a premium to their net asset value (mid-market price of 108p as at close on 18 July 2003), the Company, in response to investor and shareholder demand, is considering a further issue of shares. A further announcement will be made in due course.
Chicago-based Harris Associates acts as Dexion Absolute's Investment Advisor and is responsible for the day-to-day management of the Company's investment portfolio.
Harris Associates launched its first fund of hedge funds, Aurora Limited Partnership, in January 1988. From its inception to 31 December 2002, Aurora Limited Partnership has generated a US dollar annualised return of 13.6 per cent with volatility lower than that of the JP Morgan Global Government Bond Index.
Dexion Absolute's assets are managed according to a mandate consistent with that of Harris Associates' Aurora Limited Partnership.
Dexion Absolute's investment objective is to provide shareholders with consistent capital appreciation, with a target US dollar annualised return of 12 per cent to 15 per cent in any three to five year period, independent of equity market direction and with low volatility. It seeks to achieve its objective through investment in an actively managed portfolio of hedge funds, diversified by investment strategy, style and manager. The Company's shares are denominated in Sterling and the Company implements a hedging policy to protect the Sterling value of its US Dollar denominated investments.
As at 31 May 2003, Dexion Absolute had allocations among 36 managers in the following sectors: Hedged Equities; Distressed; Opportunistic; Relative Value; Short Selling; Tactical Trading; Equity Strategies and Event Driven.
Robin Bowie, Director of Dexion Absolute Limited and founder of Dexion Capital Plc, said: "We launched Dexion Absolute in December 2002 in response to demand from our clients for a fund of hedge funds that met their fiscal and regulatory needs and where the investment advisor was one of indisputable quality in terms of track record and performance."
Mr Bowie added: 'It used to be the case that only high net worth individuals and institutional investors had access to quality hedge funds. With Dexion Absolute, a diversified portfolio of hedge funds, selected and monitored by one of the industry's most experienced groups, is now available to a wide range of investors in a familiar, highly regulated and tax efficient structure."
Background Note: Dexion Capital (Guernsey) Limited is the Manager of Dexion Absolute Limited and is regulated by the Guernsey Financial Services Commission.
The advisers to Dexion Absolute are Jones, Day, Reavis & Pogue (Solicitors in London), Ogier & Le Masurier (Advocates in Guernsey).
KPMG, Guernsey (Chartered Accountants and Registered Auditor)
HSBC Fund Administration (Guernsey) Limited (Administrator), Barings (Guernsey) Limited (Custodian), Hoare Govett Limited, London (Financial Advisor, Sponsor and Placing Agent).
London-based Dexion Capital Plc, an affiliate of Dexion Capital (Guernsey) Limited, acts as Investment Consultant to the Manager, conducts regular reviews of the performance of Harris Associates and compliance with the investment mandate, and deals with investor relations and ongoing marketing.
Chicago-based Harris Associates was founded in 1976 and has 192 employees and USD37.8 billion in assets under management in mutual funds, alternative investments and separate accounts. The Alternative Investment Group was established in 1988 and has 27 dedicated employees and USD3.4 billion under management in funds of hedge funds and segregated accounts.
Harris Associates launched their first fund of hedge funds, Aurora L.P., in January 1988 since when it has generated annualised returns of 13.26 per cent with volatility lower than that of the JP Morgan Global Government Bond Index. The consistent investment philosophy, approach and management adopted since 1988 have made Harris Associates one of the most experienced hedge fund investors and a recognised leader in the sector.
In 2000 Harris Associates became a wholly owned subsidiary of CDC IXIS Asset Management North America L.P., a leading French institutional money management company. Harris Associates remains autonomous retaining full control of all investment decisions.
copyright Hedgeweek 2003