Enter the crypto sphere
The Digital Asset Class AKA Crypto has come a long way in a short space of time. It has moved out of the shadows and into the mainstream. It has not been without its challenges but it has now taken the leap across the ‘Innovation Chasm’ and in doing so it has reached the next phase. We are at a tipping point. Accredited investors – private and institutional – have begun to take part, as the frameworks have improved and transparency and risk controls have begun to reach the standards they expect.
There is still much work to be done on the infrastructure and the landscape is still evolving. This is exciting as it means that there is still much opportunity to explore and harness by those who can see the forest for the trees and who have the ability to manage risk effectively. Discerning investors are always looking for able navigators to assist them in accessing emerging opportunities.
We have a track record of identifying opportunities around the edges ahead of the herd and a proven ability for harnessing volatility via effective risk management. We have the solutions for investors looking to gain a foothold in this fast moving space. Peace of mind is our starting point and risk management is at the core of everything we do. The time is now for getting involved, and we are here to help.
Enter a new domain with experienced navigators
The digital asset sphere is an evolving and fast growing opportunity that is seeing increasing allocations from discerning investors – private and institutional.
Our team has monitored the space in order to develop and test a number of strategies built upon a foundation of our tried and tested risk management frameworks, and harnessing our extensive trading expertise across traditional asset classes.
We have established relationships with industry experts and experienced investment managers in the space in order to develop exclusive solutions based on institutional investor frameworks, but with the agility required to harness this rapidly growing opportunity set. We have sourced the top service providers in the space from custody, prime broker, banking, legal and administrative solutions. With these building blocks in place we have a solid foundation to access this nascent asset class from.
We will be providing Accredited Investors with secure and transparent ways to access this key emerging opportunity.
The Strategic Crypto Fund
Overview of The Strategic Crypto Fund
A smart access point into the rising crypto sphere.
The Fund seeks to deploy a balanced allocation to 10 of the most liquid crypto asset tokens, with a quant-driven hedging algorithm for dynamic adjustments designed to reduce volatility and improve returns.
Operated by experienced managers using a traditional institutional private fund framework with the safeguards discerning investors expect.
Suitable for medium to long-term investors seeking smart and balanced levels of exposure to the top cryptoassets.
Investors should expect the high levels of volatility and potential drawdowns over short periods of time that comes with investing in an emerging asset class.
The fund follows an active trading strategy, with weekly rebalancing policy curated through data science techniques.
The fund may move portions of the assets into cash depending on the levels of market drawdown, thus decreasing exposure to the top cryptoassets optimal mix with a maximum exposure of 100% to cash. Exposure will generally be increased in performing markets with a maximum cap of 15% to each cryptoasset.
Where possible, lending strategies may be deployed with the aim of partly offsetting management fees and trading costs for better returns.
Returns are generally uncorrelated with the performance of major indices making the fund an effective portfolio diversifier.
The Fund aims to capture expected long-term gains in the broader crypto market. The Investment Manager believes that weekly rebalancing positions the Fund well to participate in long-run growth, while the cash hedging approach seeks to reduce volatility.
The Strategic Crypto Fund
Overview of The Strategic Crypto Yield Fund.
The power of compounding through innovative yield-harnessing strategies.
The Fund is designed specifically for Accredited Investors seeking a low-volatility and yield-based returns by accessing the fast-growing digital asset space indirectly. The Fund aims to provide compounding growth of AUM with the continued reinvestment of the earned interest.
The Fund works with a risk management first approach to all aspects. The chosen custody providers, lending platforms, and tokens will all be selected with that in mind.
Objective and Suitability:
The Fund aims to maximize interest income on USD and USD equivalents with zero anticipated drawdown risk. Fund assets will be effectively loaned out on margin lending platforms and be exposed to fluctuating yields dependent on market demand. Returns have historically been significantly higher than comparable dollar-based money market vehicles in the traditional markets.
The Fund, therefore, aims to provide investors with a high degree of capital stability coupled with consistent returns over their investment horizon. The Fund is suitable for investors who are relatively risk-averse and seeking an investment vehicle that will provide capital preservation and consistent returns.
The fund will aim to consistently utilize 95% of fund assets (held in USD and stablecoin assets) to obtain margin lending positions which earn interest daily. The interest rates achieved will be optimized across exchange platforms and currencies by a combination of efforts from the fund management team and automated technology that will take advantage of spikes in the daily rates to lock in funding positions for periods of up to 30 days. The fund benefits from the extreme volatility of the crypto market – as this drives the lending rates – but has no direct exposure to the crypto market.
The Different Types of Crypto based lending that the Fund will pursue:
Custodial based lending currently has 80% of the crypto lending market and is mainly margin finance focused in nature. The user deposits their crypto, including stable coins, with a lending platform. The platform will lend users assets either in the peer to peer mode or will consolidate them and will lend them via the OTC (Over The Counter) to vetted counterparties. The platform will lock these assets as collateral and will lend fiat or stable coins. The borrower will receive either crypto, stable coins, or fiat on this platform. If the borrower defaults, then their crypto collateral will be liquidated. The Fund will initially be focused on this type of targeted yield strategies mainly.
Non-custodial lending also known as DeFi lending or Decentralized Finance lending, has the other 20% of the crypto lending market currently. As the space evolves and the frameworks establishes extended track records, The Fund will look to identify DeFi projects that have proven resilient and that can be custodied with top-tier regulated custody providers. The objective will be to diversify the sources of yields and complement the more traditional open and fixed term margin lending strategies.