Dexion Capital expands role as hedge fund service provider

The announcement today that Dexion Capital is the only adviser and placing agent for listing one of the hedge industry’s flagship funds is only the latest in a series of wins for the diversified fund servicing boutique.

It is a coup for Dexion to help BlueCrest Capital Management list a feeder into its computer-driven BlueTrend strategy, which represents almost half the $29bn manager’s total assets.

It is the latest in a row of such wins.

This year, Dexion also appointed industry veteran Tom Skinner from JP Morgan Cazenove to head its research efforts, as well as recruiting Robert Peel from the investment trusts team at Winterflood Securities,

Last year it brought joint venture hedge business advisors Katalyst Partners inhouse, and it has helped various investors buy into the listed hedge fund sector.

Skinner was senior research analyst at JP Morgan Cazenove, leading coverage on listed hedge, private equity and offshore property funds, and infrastructure and conventional equity investment companies.

At Dexion, he and his team is expected to publish regular deep research on the listed hedge, property, and private equity sectors, plus news flow daily.

It is a further expansion for the London-headquartered firm, which has kept faith with the listed hedge fund industry even when the future of that industry seemed less than certain back in early 2009.

As investors offloaded liquid shareholdings across the board from late 2008, average discounts on fund of hedge funds NAVs widened to a high of around 35% in December. Through this, Dexion kept promoting its Dexion-branded listed funds of funds.

Later in 2009, and in 2010 share prices and NAVs recovered although some funds were still holding investor votes on their future as their prospectuses demanded they do if discounts were too wide for too long.

In these years Dexion expanded into market making for listed fund shares, and built books for Blue Crest AllBlue and BH Credit Catalysts, highlighting the resilience of the listed single manager hedge fund universe.

In 2010 the 12-year old firm expanded into corporate consulting to hedge fund businesses, through an investment into Katalyst Partners LLP, and in 2011 brought this business in-house.

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