Final NAVs May 2009

 

TIDMDASL 
 
RNS Number : 8143U 
Dexion Alpha Strategies Limited 
30 June 2009 
 

Dexion Alpha Strategies Limited (the "Company") 
 
 
May Net Asset Values 
 
 
Ordinary Shares 
 
 
The net asset values of the Company's Ordinary Shares as of 29 May 2009 are as 
follows:- 
 
 
+--------------+--------------+-------------+-------------+ 
| Share Class  |     NAV      |    May      |    YTD      | 
|              |              |Performance  |Performance  | 
+--------------+--------------+-------------+-------------+ 
| GBP Shares   |  96.06 pence |   +2.52%    |   +5.39%    | 
+--------------+--------------+-------------+-------------+ 
| EUR Shares   |   EUR 1.1594 |   +2.52%    |   +2.77%    | 
+--------------+--------------+-------------+-------------+ 
| US$ Shares   |   US$ 1.6339 |   +2.82%    |   +3.32%    | 
+--------------+--------------+-------------+-------------+ 
 
 
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 4 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 
 
 
Positive performance across all strategies led to an overall gain for the 
Portfolio. As the global economic recovery theme grew in popularity and spread 
across virtually all sectors, outstanding returns were recorded from the 
underlying managers in the Portfolio's Healthcare and Emerging Market 
strategies. 
 
 
The Portfolio remains highly flexible with the underlying managers able to 
extract alpha from directional and spread trades, while the significant long 
volatility exposure within the portfolio should serve it well should market 
conditions deteriorate significantly. 
 
 
Market Overview 
 
 
Asian Opportunities: +2.32%. Managers took advantage of the improved sentiment 
towards Asia and a weakening US Dollar to deliver positive returns. Performance 
was underpinned by strong gains from core positions in financial and consumer 
discretionary sectors, especially in Hong Kong and China. One manager saw strong 
price appreciation in some of its smaller cap names as the rally broadened to 
less liquid stocks. Those managers with a more balanced portfolio, as well as 
portfolios focusing more on South-East Asia and less on China and India, 
produced lower but nevertheless positive returns. The only fund to report a loss 
was a multi-strategy manager with long volatility exposure who was hurt by a 
significant contraction of implied equity volatility and Asian credit spreads. 
 
 
Healthcare Opportunities: +9.44%. The most significant position in the strategy 
began the month with net exposure of +100%, providing the manager with ample 
opportunity to capture the market moves and add alpha through security 
selection. Two of the fund's top holdings, a medical device company and a 
pharmaceutical company, appreciated +21% and +17% respectively. 
 
 
Special Situations: +3.75%. Positive returns for all managers were led by a 
manager who bounced back after last month's loss to post strong gains from gold 
exposure, with one of its holdings, Anglo Gold Ashanti, rising 35%. As credit 
markets experienced another strong month, the Portfolio's Distressed managers 
were both up. One manager made money across all sub-sectors, profiting from a 
reduction in short exposure and a subsequent increase in long exposure, with 
strong returns out of the auto sector, particularly Chrysler Finance. The 
Portfolio's other Distressed manager was slightly up, although it underperformed 
its peers due to a macro hedge and illiquid positions which failed to 
participate in the credit rally. 
 
 
Emerging Markets Macro: +5.46%. Managers profited from the continued appetite 
for risky assets. Long positions in credit and equities in developing countries 
drove profits for two managers, while another manager profited from positions in 
Brazilian and Mexican fixed income and currency markets, as well as a rally in 
their legacy positions. The Portfolio's managers have gradually increased risk 
during the month and are cautiously optimistic about the outlook for emerging 
market investing. 
 
 
Commodity Strategies: +3.49%. The majority of commodity sectors rallied during 
the course of the month. In Canada the S&P/TSX materials sector rose 21%, 
driving one manager's performance upwards through exposure to precious and base 
metal mining stocks. Elsewhere, diversified funds with a directional bias were 
up, with one manager benefiting from their bullish stance on energy. Base metals 
were broadly positive, with managers making money on long copper calendar 
spreads and long nickel option positions. While losses were limited, one manager 
was caught on the wrong side of the commodity rally, losing from bear spread 
positioning at the front ends of various commodity yield curves. 
 
 
Energy & Emissions: +2.26. A continued decline in the US Dollar and stronger 
energy prices, as Chinese demand and OPEC's apparent control of oil production, 
helped maintain recent investor buying trends. After months of underperformance, 
natural gas moved higher in tandem with the rest of the energy complex. One 
manager, who has been bearish front month natural gas for a few months, was 
negatively impacted. On the plus side, significant returns were derived from 
investments oil and gas exploration companies and European utility stocks, where 
long positions drove returns in an environment of share price strength. 
 
 
Environmental Strategies: +2.34%. The continued recovery in global equity 
markets provided a positive tailwind for the Portfolio's Environmental 
long/short equity managers. The Portfolio's Asian-focused clean technology fund 
held core positions in wind companies which rose sharply and contributed to the 
managers +19% return. The water sector posted gains, with strong performance in 
the Asian water space helping the Portfolio's water focused manager. Carbon 
markets staged a solid rally with CER futures up 10.5% and EUAs up 5.2%. While 
the spread narrowing did not have a negative impact on the carbon manager, the 
manager's short positioning did detract from performance. 
 
 
Short-Term Managed Futures: +3.37%. Bullish investor sentiment drove risk assets 
higher, proving favourable for the Portfolio's short term traders. Strong 
contribution came from one manager who took advantage of a sharp worldwide 
downward move in mid-May 2009 and the subsequent strong recovery in equities a 
week later. Another manager saw returns from a number of positions in 
currencies, soft commodities and metals. 
 
 
European Loan Opportunities: +4.49%. The leveraged loan market maintained 
rallies from earlier in the year and posted strong gains. The secondary market 
rally was not only limited to better performing credits or flow names but also 
extended to names that had previously been untouched. As a consequence, bids 
were registered from investors looking for value in performing, but more 
illiquid, names. 
 
 
+-------------------------+------------+----------+-----------+-------------+ 
| Strategy                |Allocation  |  Number  |     Performance by      | 
|                         |  as of 1   |of Funds  |        Strategy         | 
|                         |    June    | as of 1  |            %            | 
|                         |     %      |  June    |                         | 
+-------------------------+------------+----------+-------------------------+ 
|                         |            |          |    May    |    YTD      | 
+-------------------------+------------+----------+-----------+-------------+ 
| Asian Opportunities     |    21      |    6     |   2.32    |    4.72     | 
+-------------------------+------------+----------+-----------+-------------+ 
| Healthcare              |     4      |    3     |   9.44    |    3.37     | 
| Opportunities           |            |          |           |             | 
+-------------------------+------------+----------+-----------+-------------+ 
| Special Situations      |    14      |    5     |   3.75    |    4.58     | 
+-------------------------+------------+----------+-----------+-------------+ 
| Emerging Markets Macro  |     4      |    3     |   5.46    |    14.69    | 
+-------------------------+------------+----------+-----------+-------------+ 
| Commodity Strategies    |     8      |    10    |   3.49    |    6.46     | 
+-------------------------+------------+----------+-----------+-------------+ 
| Energy and Emissions    |    19      |    12    |   2.26    |    6.28     | 
+-------------------------+------------+----------+-----------+-------------+ 
| Environmental           |     7      |    7     |   2.34    |    8.02     | 
| Strategies              |            |          |           |             | 
+-------------------------+------------+----------+-----------+-------------+ 
| Short-Term Managed      |    15      |    4     |   3.37    |    3.84     | 
| Futures                 |            |          |           |             | 
+-------------------------+------------+----------+-----------+-------------+ 
| European Loan           |     8      |    1     |   4.49    |    9.28     | 
| Opportunities EUR         |            |          |           |             | 
+-------------------------+------------+----------+-----------+-------------+ 
| Total                   |    100     |    51    |           |             | 
+-------------------------+------------+----------+-----------+-------------+ 
 
 
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/8143U_-2009-6-30.pdf 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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