November 2022 Market Commentary and Performance
|Portal Digital Fund||Horizon Index Fund||Radiance Global Fund|
|November: -9.7%||November: -23.6%||October: -18.50%|
|YTD: -41.1%||YTD: -72.2%||YTD: -25.52%|
|2021: +83.1%||Since Inception: -72.2%||Since Inception: -25.52%|
|Since Inception: +97.9%|
Market Commentary from Mark Witten, CIO
November was a month that will be remembered in the cryptocurrency and digital asset (“crypto assets”) markets as the month FTX collapsed and the shock waves it sent through the crypto asset ecosystem. This all started back in November 2021 with the initial liquidity crunch and the pullback in risk assets sparked by sharply rising rates and has now come full circle.
2022 in Review – Annus Horribilis
Most investors never truly analyse and assess the direct correlation between leverage, liquidity and volatility. Put simply, when volatility rises, liquidity falls as all investors rush to the exit, and leverage exacerbates the downward spiral with forced selling to cover margin. This is known as “Reflexivity”, and reinforces the panic and fear inherent in behavioural economics.
Portal Digital Fund
The Portal Digital Fund (PDF) finished November down -9.7% net of fees vs the overall market as represented by the CCI30 Index down -17.7% and BTC down -16.3%. The PDF’s exposure to FTX was limited to 3.8% of FuM, which was due to our rigorous ODD and stringent investment process.
Horizon Index Fund
The Horizon Index Fund was down -23.6% for November 2022, in line with the broader market.
Radiance Global Fund