Dexion Absolute proposes a new strategy and offers to buy shareholders out


#1

Originally published at: http://whichinvestmenttrust.com/dexion-absolute-proposes-a-new-strategy-and-offers-to-buy-shareholders-out/
The Board is to consult major shareholders on a proposal to amend the investment strategy to refocus to ‘early stage’ hedge fund managers. Dexion Absolute (LON:DAB) a £132 million fund-of-hedge-funds investment trust, that along with other fund-of-hedge-funds investment trusts has suffered from ongoing poor performance, and high fees, will ask shareholders to vote on a…


#2

Funds like these are designed to make the management rich regardless of the returns. They get a fat AMC in good times and bad plus they get 20% of any return over and above inflation.

Their raison d’etre was to protect investors wealth in down markets but most failed to do that when their so called sophisticated algorithms failed them. Truth is, their investment process was only ever capable of working for a short period.

I’d be shot of the lot of these types of funds.


#4

Standard Life GARS is a hedge fund but avaiable for much redeuced fees. I think this is a much better option