PORTAL Asset Management, a Singapore-incorporated firm investing in fund managers operating in the digital currency and blockchain economy, has launched its first fund.
The Portal Digital Fund operates via a fund-of-funds structure, targeting sophisticated investors in the Asia-Pacific.
Portal aims to have over US$100 million in funds under management in the long term.
Initial fundraising closes on March 31, 2020, and will focus on high net worth individuals, family offices and boutique institutional investors.
The fund offers investors a simple, risk-managed solution to access the fast-growing but highly fragmented and complex digital assets economy, Portal said on Thursday.
“With global assets now capable of being digitised, fractionated and traded using blockchain technologies, digital assets are set to become the fourth superclass, joining the traditional classes of store of wealth, capital and goods,” the boutique investment firm added.
Portal will create a diversified portfolio of between four and eight specialist global fund managers, to deliver returns uncorrelated with traditional securities markets.
The portfolio will be focused on two investment streams: quantitative-driven trading covering systematic, momentum and arbitrage strategies; and long-only venture capital and private equity funds investing in blockchain protocol infrastructure. The fund’s initial focus will be on the former stream.
“The inevitable adoption of sovereign and enterprise cryptocurrencies and the rapid proliferation of blockchain solutions across all industries, are fundamentally reshaping the global financial economy,” said Deryck Graham, founder and chief executive officer of Portal.
The firm’s advisory committee comprises experienced researchers and technical specialists in the blockchain industry, including Nitin Gaur, director of IBM’s Blockchain Labs, as well as Matt Spoke, founder and managing director of AION Network.
In the past two years, Portal has aggregated more than 700 digital fund managers and reviewed over 100, using a macro-thematic top-down investment process combined with a fundamental bottom-up investment analysis approach.
The two-year return on the strategy since inception on Sept 1, 2017, was 110.8 per cent. The year-to-date August performance was 44.6 per cent, outperforming the CCi30 Index and top cryptocurrencies, and with a fraction of the volatility, according to Portal.
By: Fiona Lam