LONDON (HedgeWorld.com)–Shares of the third fund of funds from Dexion Capital plc have begun trading on the London Stock Exchange.
The closed-ended fund, Dexion Trading Ltd. (LSE: DTL) closed its first day, Nov. 29, up a penny, to ?1.01, on volume of 181,451.
The week before, Dexion Trading’s initial public offering raised ?83 million (US$157 million), leading Nick Brown, the director of Dexion Capital to say that the company was very pleased. “A trading portfolio complements our other managed products and enables investors to further diversify their sources of return,” he said.
The investment adviser for Dexion Trading will be FRM Investment Management Ltd., Guernsey. FRM manages the broadly similar fund Absolute Alpha Opportunistic Funds, which since April 2001 has returned to its investors 29.23% (sterling class) and exhibited long-term volatility of around 3.5%. Dexion noted in a statement last week that Absolute Alpha has outperformed the MSCI world TR index (US$) as well as the FTSE all share index since June 2002. Dexion Trading and Absolute Alpha are expected to have a 60% or more overlap in managers.