As per our latest results, Cryptochain Capital Australia’s first cryptocurrency hedge fund of funds achieved a 43% return during our first month of investments. The first 4 crypto hedge funds we gained exposure across were based around directional strategies in long based funds. These directional strategies include:
- Exclusive/Early Access (ICO’s)
- Qualitative/Fundamental
- Infrastructure/Protocols
During the month of May we decided to diversify our investment strategy to include exposure to 3 market-neutral crypto hedge funds that undertake the following strategies:
- Trading/Catalyst-Driven
- Systematic/Quantitative
- Arbitrage
Outline below are the characteristics of the 3 crypto hedge funds that have been added to our portfolio.
Fund 5 – Systematic/Quantitative Based Fund
This fund is a 100% systematic and has fully automated execution. The primary instruments are CME/CBOE Futures on Bitcoin and short-term trend following and momentum models, including shorting.
Fund 6 – Arbitrage-focused Fund
This fund focuses on exchange arbitrage, triangular arbitrage and OTC block trading. Being an institutional-grade fund managed by a former portfolio manager at a Harvard management company and has a proven track-record of generating positive returns, even in a down market.
Fund 7 – Systematic Based Fund
Systematic investment process with regular rebalancing and the appropriate use of derivatives to hedge risk. It applies a proprietary rating system to a portfolio of cryptocurrencies according to their size, liquidity, past performance and expected returns.
Its our belief at Cryptochain Capital that a well diversified investment strategy between a directional and market-neutral based strategies will deliver to our investors our objective of the best risk-adjusted returns available in crypto asset investing.
