Dexion Alpha shareholders vote for wind-up

Dexion Alpha Strategies euro and sterling shareholders have voted down continuation proposals put forward by the board.

Dollar  shareholders backed the company, although the class is a tiny £1.45 million minority relative to the £64.53 million sterling and £15.24 million euro share classes.

Almost two thirds of sterling shareholders (57.07%) and 96.61% of the euro shareholders opposed the proposals put forward by the listed alternatives fund.

The company said that it was now formulating wind-up proposals which it would put forward. The relative sizes of the share classes make it likely these will apply to all.

In sterling denominated terms the portfolio has fallen 12.78% over the past year versus a 10.48% HFRX Absolute Return index and is trading at a 10.7% discount.

Earlier this month shareholders in sister fund Dexion Absolute voted to stay invested although analysts said this was likely to be due to unappealing alternative proposals.

Investors would have been transferred to an unlisted wind-up vehicle and would have faced a likely wait of several years before the most illiquid assets could be sold.

After the chaos at the end of 2008 when managers were battered by redemptions, unwinding leverage and indiscriminate markdowns hedge funds have recently come back.

Modest inflows of money coming back to the market have helped the industry shore up its capital footing while returns are looking more sustainable on reduced debt.