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.
Investors in the euro class of Dexion Absolute, the first listed fund of hedge funds Dexion launched, have enjoyed average annual share price appreciation of 18.4% over the last three years and saw NAV expressed in euros appreciate in value by about 8.3%, on average, per year. MSCI World (euro) made a loss of 12.3% per annum over the same period on almost double the volatility (14% per year) of the euro share class (9.23%).
On average, Dexion Absolute’s peers made an average 3.6% (in US dollar terms) over the last three years, according to the Hedge Fund Research fund of funds index.
In 2011 Dexion acted as joint placing agent and book runner, raising over $750m through an IPO and C share issue for NB Global Floating Rate Income fund, and two C share issues for Carador Income fund. The firm was also appointed as corporate broker for six listed alternative funds last year.
As well as hiring Skinner for research this year, Dexion also announced the recruitment of Robert Peel from the investment trusts team at Winterflood Securities, for corporate finance. He works in Dexion’s corporate finance team under team head Ravi Anand on closed-end investment funds and investment management M&A transactions.
Anand says the crisis has shown managers the importance of expanding an investor base.
“All managers desire diversification of their client base. What the crisis showed was managers need to diversify investors to withstand a broad array of redemption cycles, and investors reacting differently. But managers are also asking themselves, if they are a big macro house, for example, do they need to go down the Ucits route at all, if they already have enough buyers for their Cayman Islands vehicle?”