December 2021 Newsletter

December   -4.7%*

YTD             80.1%

12 Months   80.1%

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End of Year Position The Portal Digital Fund finished 2021 up +80.1% net of fees vs BTC up +59.5%, with less than a third of the volatility. December was down -4.7%* net of fees vs BTC down -18.7% and the CCI30 Index down -15.9%.  We are pleased with the robust performance of the Portal Digital Fund in 2021 and continue to be confident with the strength of strategy for 2022.

Description

The Portal Digital Fund (the “Fund”) is an actively managed Global Fund of Hedge Funds focused on the digital currency investment space. The Fund seeks to achieve medium to long-term growth through investing in a diversified portfolio of 8-10 specialist fund managers running uncorrelated digital currency trading strategies. The Fund is focused on absolute returns and expects to generate substantial outperformance with lower volatility versus the CCI 30 Index, the benchmark for digital currencies. The Fund’s targeted returns are 25% p.a. over a rolling 5-year period net of fees.

Fund Characteristics

• Uncorrelated to global equity, currency and debt markets.
•  Access to best-in-class global fund managers specialising in digital currency-related strategies
•  A rigorous and repeatable due diligence process.
•  Absolute return investment objective with managed volatility, seeking consistent incremental growth in capital.
•  A robust risk-management approach, with an unrelenting focus on capital preservation.
• High liquidity and low exposure to systematic market risk.
• Targeted volagtility of 15%-17% p.a. with a targeted return of 25% p.a. net of fees.

Investment Strategy

Our core thesis is predicated on our firm belief that ‘everything is about to change’ as digital assets become the fourth superclass of assets. As the digital currency market formalises and becomes regulated, it continues to represent a new frontier for accredited investors to seek superior risk adjusted returns that are uncorrelated with traditional equity and debt markets. These markets are
inefficient and represent substantial sources of alpha for skilled investment managers.

Our experienced team brings an institutional-grade investment approach combining both quantitative and qualitative investment analysis with prudent portfolio construction to provide access to this unchartered space. We aim to consistently deliver positive performance with reduced volatility via uncorrelated strategies that achieve upside as the sector grows and which preserve capital in down-markets via diversification across differing systematic trading strategies.