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July 2021 Newsletter

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09.08.2021 Newsletters

July 2021 Performance

 

July                 4.2%

YTD                46.1%

12 Months      73.4%

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July initially saw further weakness as Bitcoin dropped a further 16% from $35,000 to $29,500 before rallying 41% in the final 10 days of the month to close at $41,500. This was driven by positive headlines across both the regulatory and investment side with a large increase in participation by hedge funds in the digital currency space.  In addition, Fidelity noted that 70% of all their traditional and alternative investment managers plan to add exposure to the cryptocurrency markets. This is on the back of continued inflationary fears compelling investors to look for alternatives to equities and fixed income. We believe that Bitcoin remains in a secular bull market, and it must be noted that the cryptocurrency has fallen by a minimum of 25% once in every calendar year since 2013 before pushing on to new highs.

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.

 

Strategy Monthly Returns

Investment Strategy Performance Statistics and Rolling 12 Months Returns

Fund Characteristics:

  • Uncorrelated to global equity, currency and debt markets.
  • Access to best-of-breed 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 volatility 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.