Advisory & Research
Client Advisory Services
Dexion Capital plc offers institutional investors a specialist advisory service in the hedge fund sector, with particular focus on sourcing and evaluating funds of hedge fund products and their managers.
Dexion Capital recognises that many institutions initially choose to invest in hedge funds via funds of hedge funds (FOHF), a sector which can be difficult to research. Therefore it can take time for institutions to analyse this area properly and may require a commitment of resources, a development of expertise and rigorous procedures which are not readily available to most investors.
Dexion’s Advisory and Research team focuses on developing an understanding of the FOHF universe to better advise our clients on what can be achieved from their investments and the choices available to them.
Client Summary
Typically Dexion’s advisory clients are institutional investors based in the UK, Northern Europe, the Middle East and the Far East. They include insurance companies, government and corporate pension funds, sovereign wealth funds, asset and private wealth managers, private banks, bank treasury departments and family offices.
Research & Analysis
There are several ways to construct and manage portfolios of hedge funds. Different groups take different approaches to their businesses, drawing on differing skill sets and experience. Dexion Capital’s Research and Advisory team seeks to understand in detail how these can combine to give a particular FOHF manager its distinctive capability and potential to generate consistent and sustainable long term performance.
Qualitative
The Advisory and Research team spends considerable time with FOHF managers to assess their processes and evaluate the performance of their products. Typically interviewing up to 50 new managers per annum, the qualitative evaluation considers both the organisational and investment aspects of the FOHF management groups. The team believes that a complete assessment of the investment process entails gaining a good understanding of manager selection, portfolio construction and risk management methods.
Quantitative
Dexion Capital has developed an extensive quantitative database of performance data sourced from industry and proprietary analytical tools and using a wide range of performance metrics. These include data on return, risk, correlation, alpha and beta measures with respect to selected indices. Furthermore, there are a number of quantitative tools for portfolio construction and the analysis of fund returns in different market environments.