•  
• Tweet
•  
•        Print
•  
•         Track Keywords
•  
• 

By Benedicte Gravrand, Opalesque London:

Clarifications about Dejima fund's demise According to Down Jones (WSJ.com) yesterday, London-based investment manager Stratton Street Capital wound up the Dejima Fund at the end of February (coverage) after assets had sunk from around $90m to $1.1m due to negative performance and heavy redemptions. According to the article, remaining assets from Dejima were transferred the Japan Synthetic Warrant Fund.

Andrew Main, Stratton Street's managing partner, wanting to clarify a few points about this announcement, sent further details about the fund's story to Opalesque:

He said that it had been decided by the Board of the Dejima Fund to compulsory redeem the outstanding shares owing to the size of the fund (which stood at $1.7m at the end of Feb-09) as holders were facing a high Total Expense Ratio (a measure of the total costs associated with managing and operating an investment fund).

"The Dejima Fund invested in a long call option derivative created from stripping the equity value out of convertibles by selling off under a repurchase agreement the fixed income value of the convertible," he said.

"Holders were offered the opportunity to switch into its sister fund the Japan Synthetic Warrant Fund which offers greater liquidity through weekly dealing rather than monthly dea......................

To view our full article Click here