Final NAVs June 2009

 

TIDMDASL 
 
RNS Number : 5750W 
Dexion Alpha Strategies Limited 
30 July 2009 
 

Dexion Alpha Strategies Limited (the "Company") 
 
 
June Net Asset Values 
 
 
Ordinary Shares 
 
 
The net asset values of the Company's Ordinary Shares as of 30 June 2009 are as 
follows:- 
 
 
+--------------+--------------+-------------+-------------+ 
| Share Class  |     NAV      |    June     |    YTD      | 
|              |              |Performance  |Performance  | 
+--------------+--------------+-------------+-------------+ 
| GBP Shares   |  96.45 pence |   +0.41%    |   +5.81%    | 
+--------------+--------------+-------------+-------------+ 
| EUR Shares   |   EUR 1.1649 |   +0.47%    |   +3.25%    | 
+--------------+--------------+-------------+-------------+ 
| US$ Shares   |   US$ 1.6414 |   +0.46%    |   +3.79%    | 
+--------------+--------------+-------------+-------------+ 
 
 
These valuations, which have been prepared in good faith by the Company's 
administrator, are for information purposes only and are based on the unaudited 
estimated valuations supplied to the Company's investment adviser by the 
administrators or managers of the Company's underlying investments and such 
valuations may not be considered independent or may be subject to potential 
conflicts of interest. Both weekly manager estimates and monthly valuations may 
be produced as at valuation dates which do not co-incide with valuation dates 
for the Company, may be based on valuations provided as of a significantly 
earlier date, may differ materially from the actual value of the Company's 
portfolio and are unaudited or may be subject to little verification or other 
due diligence and may not comply with generally accepted accounting practices or 
other generally accepted valuation principles. The Company's investment adviser, 
investment manager and administrator may not have sufficient information to 
confirm or review the completeness or accuracy of information provided by those 
managers or administrators of the Company's investments. In addition, those 
entities may not provide estimates of the value of the underlying funds in which 
the Company invests on a regular or timely basis or at all with the result that 
the values of such investments may be estimated by the investment manager. In 
the case of 6 of the Company's 51 investments, where no such formal valuation 
has been received by today's date, an estimated valuation prepared by the 
Company's investment adviser or by the manager or administrator of the 
underlying funds has been used. Certain other risk factors which may be relevant 
to these valuations are set out in the Company's prospectus dated 10 March 2006. 
 
 
Monthly Portfolio Review 
 
 
Investment Adviser Portfolio Outlook 
 
 
The strongest contribution to the positive Portfolio performance came from the 
European Loans strategy as riskier assets continued to rise. The reversal of 
numerous trends resulted in mixed performance for most other strategies, with 
strong gains in the Healthcare strategy and losses from Short-Term Managed 
Futures funds. 
 
 
The Investment Adviser continues to realise cash in the Portfolio and is 
gradually increasing exposure to commodity related strategies. 
 
 
Market Overview 
 
 
Asian Opportunities: -0.87%. The loss in momentum as the global equity rally 
stalled negatively affected certain Asian markets. It was a month where 
volatility exposure was detrimental given declines in volatility pricing, 
creating a difficult backdrop for the multi-strategy managers. Long/short 
managers further detracted from performance and realised poor results from stock 
selection in their portfolios. Japan was one of the strongest performing 
countries in Asia, making it difficult for one manager who had short exposure to 
this country. The largest loss came from one manager's biggest single name 
holding declining significantly following an announcement that the company was 
planning to sell some its non-core assets. 
 
 
Healthcare Opportunities: +8.60%. Performance was driven by improved sentiment 
towards small- and mid-cap biotech stocks which rallied strongly. Attitude 
towards the sector became more positive as fears of the Obama administration's 
attempt to socialise healthcare services gave way to investor realisation that 
actual US legislative changes were likely to have less impact than first 
thought. Despite impressive results from the healthcare sector, there has been 
little change in fundamentals; the rebounds are a recovery correction from 
oversold conditions that had depressed the sector last year. 
 
 
Special Situations: +0.39%. With credit outperforming equity markets, 
performance in the strategy was driven by distressed credit exposure. One 
manager profited from bank debt positions, especially from a number of 
corporations issuing high yield bonds to repay near-term loan maturities. On the 
equity side, results were more mixed. One of the Portfolio's core managers, who 
had previously built up gold positions, struggled as the sector sold off 
slightly, with their largest position slipping back following previous strong 
gains. 
 
 
Emerging Markets Macro: -0.31%. The reversals in the emerging markets caused 
havoc for some managers, as currency and equity strategies drove down 
performance. 
 
 
Commodity Strategies: -0.42%. Commodity markets were mixed, creating an 
uncertain backdrop for managers. Agricultural exposure dominated both positive 
and negative performance. On the positive side, strong returns came from one 
manager's short exposure in corn. Large gains accrued amid sharp price falls 
after a USDA report showed US farmers planted more acreage than previously 
anticipated. Another manager's long sugar exposure also generated profits, 
although these were offset by larger losses in grains and long cocoa positions 
as coca prices retreated towards the end of the month. 
 
 
Energy & Emissions: +0.36%. Performance was in large part driven by successful 
trading in natural gas and European utility stocks. While European equity 
markets, in particular the utilities sector, posted negative numbers, the 
Portfolio's managers generated positive returns thanks to good stock selection. 
With energy indices this month giving back 40-50% of their gains since March 
lows, one manager was hurt from long exposure to energy stocks, although they 
were able to mitigate some of the losses through tactical hedging. 
 
 
Environmental Strategies: +1.74%. Good performance came from successful stock 
selection by the Portfolio's long/short managers, with the bulk of returns 
generated by the carbon trader. Carbon markets continued to trade lower on weak 
EU industrial data, leading to lower emissions, and thus lower demand for 
emission credits from such installations. This move benefited the Portfolio's 
dedicated carbon manager's short exposure. 
 
 
Short-Term Managed Futures: -1.05%. Managers struggled as volatility dropped and 
markets continued to trade in a relatively tight range. Short-term contrarian 
strategies have had little opportunity to realise profits, with the largest 
losses arising from currency and interest rate trading, particularly the 
Eurodollar. 
 
 
European Loan Opportunities: +7.13%. The improving investor confidence towards 
global credit markets, coupled with rising market liquidity, has driven loan 
prices higher, strongly benefitting the strategy. The sustained increase in 
secondary prices positively impacted the return of the European Leverage Loan 
Index, up +16.74% during Q2 2009. Despite the positive effect of secondary 
prices, the number of waiver requests asking for covenant resets has increased. 
The Investment Adviser expects the number of waivers to increase in the short 
term given the difficult trading environment negatively affecting the top and 
bottom line performance of companies. 
 
 
+-------------------------+------------+----------+-----------+-------------+ 
| Strategy                |Allocation  |  Number  |     Performance by      | 
|                         |  as of 1   |of Funds  |        Strategy         | 
|                         |    July    | as of 1  |            %            | 
|                         |     %      |  July    |                         | 
+-------------------------+------------+----------+-------------------------+ 
|                         |            |          |   June    |    YTD      | 
+-------------------------+------------+----------+-----------+-------------+ 
| Asian Opportunities     |    17      |    5     |  -0.87    |    3.80     | 
+-------------------------+------------+----------+-----------+-------------+ 
| Healthcare              |     5      |    3     |   8.60    |    12.26    | 
| Opportunities           |            |          |           |             | 
+-------------------------+------------+----------+-----------+-------------+ 
| Special Situations      |    15      |    5     |   0.39    |    4.98     | 
+-------------------------+------------+----------+-----------+-------------+ 
| Emerging Markets Macro  |     1      |    2     |  -0.31    |    14.33    | 
+-------------------------+------------+----------+-----------+-------------+ 
| Commodity Strategies    |     9      |    10    |  -0.42    |    6.01     | 
+-------------------------+------------+----------+-----------+-------------+ 
| Energy and Emissions    |    20      |    12    |   0.36    |    6.66     | 
+-------------------------+------------+----------+-----------+-------------+ 
| Environmental           |     8      |    6     |   1.74    |    9.89     | 
| Strategies              |            |          |           |             | 
+-------------------------+------------+----------+-----------+-------------+ 
| Short-Term Managed      |    16      |    4     |  -1.05    |    2.75     | 
| Futures                 |            |          |           |             | 
+-------------------------+------------+----------+-----------+-------------+ 
| European Loan           |     9      |    1     |   7.13    |    17.07    | 
| Opportunities EUR         |            |          |           |             | 
+-------------------------+------------+----------+-----------+-------------+ 
| Total                   |    100     |    48    |           |             | 
+-------------------------+------------+----------+-----------+-------------+ 
 
 
Strategy returns are in US$ (except where annotated) and net of underlying 
manager fees only, and not inclusive of Dexion Alpha Strategies' fees and 
expenses. 
 
 
Voting Rights and Capital 
 
 
The Company's share capital consists of 69,555,941 GBP shares (excluding 
treasury shares) with voting rights, 15,898,020 EUR Shares (excluding treasury 
shares) and 1,362,223 US$ Shares (excluding treasury shares) with voting rights. 
All Shareholders have equal voting rights based on the number of Shares held. 
Accordingly, the total number of voting rights in the Company is 86,816,184 and 
this figure may be used by shareholders as the denominator for the calculations 
by which they will determine if they are required to notify their interest in, 
or a change to their interest in the Company under the FSA's Disclosure and 
Transparency Rules. 
 
 
Supplementary Information 
 
 
Click on, or paste the following link into your web browser, to view a full 
review of the Dexion Alpha Strategies Limited portfolio. 
 
http://www.rns-pdf.londonstockexchange.com/rns/5750W_-2009-7-30.pdf 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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