RNS Number:6722S
Dexion Absolute Limited
01 December 2003

Dexion Absolute Limited ("the Company")


October Net Asset Value


The net asset value per ordinary share as of 31 October 2003 was 107.71 pence.


This valuation, which has been prepared in good faith by the Company's
investment manager, is based principally on formal valuations supplied to the
Company by the administrators of the Company's underlying investments. In the
case of 3 of the Company's 40 investments, where no such formal valuation has
been received by today's date, an estimated valuation prepared by the Company's
investment advisor or by the manager or administrator of the underlying funds
has been used. Such valuations or estimates are unaudited and may not comply
with generally accepted accounting or valuation principles.



C Shares

The net asset value per C Share as of 31 October 2003 was 98.29p

As at that date none of the net proceeds of the recent placing of C shares had
been invested other than in short term money market investments and cash.

As set out in the Company's listing particulars dated 26 September 2003, the
Company's investment adviser expects that the net proceeds of the recent placing
of C shares will be substantially invested or committed to be invested on 1
January 2004. Conversion is expected to occur on or about 4 February 2004.


Performance Review

After a brief respite in September, equity markets resumed their rally in
October. News of exceptional third quarter U.S. GDP growth, the highest rate
since 1984, combined with surprisingly strong corporate earnings and renewed
merger and acquisition activity to create a bullish environment for equity
investors. The positive economic data were a mixed bag for the fixed-income
markets. U.S. Treasuries sold off as the improving economic climate diminished
deflation fears, while corporate credit spreads narrowed.


Dexion Absolute gained 0.72% in October and is now up 9.63% year to date.


Six out of Dexion Absolute's eight strategies were profitable for October. The
distressed securities strategy performed well and continued as the largest
contributor to performance. Market participants perceived that the positive
economic data improved the likelihood of a sustainable economic recovery,
thereby brightening the prospects for many struggling companies and narrowing
credit spreads. Developments in specific situations included the debt of a
bankrupt telecommunications company, which is scheduled to be exchanged for
stock next year, trading up to reflect the appreciation in that company's
equity. Stock-specific gains and the strategy's net long exposure to the rising
market helped Dexion Absolute's hedged equities strategy record profits for the
month. A financial services specialist was the strongest performer with gains
concentrated on the long side including a provider of personal automobile
insurance, which went public earlier this year. Another manager owned successful
positions in an operator of wireless communications towers that slashed
expenses, grew revenue, and forecast an improving leasing market. Relative value
managers all recorded gains for the month. Although U.S. convertible bond
arbitrage was quiet with little new issuance and overall declines in equity
volatility, continued equity volatility in Japan resulted in good gamma trading
opportunities for several of our managers and bodes well for the future
prospects for convertible bond arbitrage in the region. Our equity strategies
managers generated profits for the month, with returns on several positions
outpacing the equity markets. One of the manager's positions in a defence and
energy firm profited due to increased defence expenditures related to the Iraqi
war. Another manager's positions in several companies performed well, including
a point-of-sale marketing company, a provider of corporate financial
information, and an information technology research and consulting firm. The
tactical trading strategy turned in a profitable month. The best performing
manager benefited from timely equity exposure to the retail, technology, and
financial sectors. In addition, our managers' profitable commodity trading in
grains, metals, and energy added to the gains. Dexion Absolute's event-driven
manager was also profitable. The opportunistic strategy was down for the month
as gains in emerging markets investments and value equities were overcome by
losses, primarily in holding company arbitrage and special situations equity
trading. One manager's pairs trade in the aluminium industry moved against him
as the long-side company's stock is facing arbitrage pressure, due to its
pending acquisition, while the short stock outpaced the market's advance.
Finally, Dexion Absolute's short selling strategy declined in the midst of the
rising equity market.








                                    Strategy


                                   Allocation


                               Number of managers


                          Performance attribution %








                                    October


                                      YTD


                                   Distressed


                                      20%


                                       5


                                      4.01


                                     53.70


                               Equity strategies


                                       5%


                                       2


                                      1.47


                                     13.23


                                Hedged equities


                                      31%


                                       12


                                      1.92


                                      9.31


                                  Event driven


                                       1%


                                       1


                                      0.38


                                     11.42


                                 Opportunistic


                                      13%


                                       5


                                     -0.76


                                      6.78


                                 Relative value


                                      13%


                                       5


                                      1.24


                                      8.62


                                 Short selling


                                       9%


                                       7


                                     -7.12


                                     -26.85


                                Tactical trading


                                       8%


                                       3


                                      0.66


                                     16.50


Strategy returns are net of underlying manager fees only and not inclusive of
Dexion Absolute's fees and expenses.


Outlook


Despite exceptional GDP growth, Federal Reserve officials appear steadfast in
their convictions that deflation remains more of a concern than inflation and
are likely to keep key interest rates unchanged for several months. The Fed is
focusing less on economic growth and more on persistent unemployment and
capacity underutilization, which constrains companies' pricing power. As a
consequence liquidity continues to be a key driver for hedge funds returns.


Investment Policy


The Company's investment policy is to invest in an actively managed portfolio of
hedge funds which is diversified by investment strategy, style and manager, to
achieve attractive risk adjusted returns with low correlation to equity and
fixed interest benchmarks. The Company does not invest in other UK listed
investment companies (including UK listed investment trusts).



                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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