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- 2023 Portfolio Summary
Bullish indicators flash green…
Fund Performance
Since August 2023, our fund has achieved a 34% return to investors, an annualized return of ~101%.
This success stems from our strategy of cost-averaging into alternative and major cap tokens, combined with a dynamic cash position strategy (50%-30%), adjusted in response to market-value appreciation and capital deployment. Our performance stands out, particularly as we've achieved these results while maintaining substantial reserve cash positions.
Compounded Returns from Our Stablecoin Strategy
Our stablecoin positions do not just sit idle and are actively managed for optimal returns.
Initially, our stablecoin lending and DeFi activities yielded a notable 10% APY. Importantly, the tokens we received as interest have, on average, doubled in value.
This significant appreciation effectively boosted our overall return rate, leading to an impressive adjusted blended 20% APY for our stablecoin investments.
Portfolio Insights
Digital Asset prices have reprice in anticipation of a bull market. Below are a few of our early portfolio wins:
Solana (SOL), an alternative L1 native token: 5x return-to-date
Realio Network (RIO), a real-world tokenization platform focused on Private Equity Markets : 5x return-to-date
Optimism (OP), an Ethereum Layer 2 (L2) blockchain.3x return-to-date
There are many other portfolio performers (our current positions are spread out over 90 Digital Assets).
Here is a high-level snapshot of our portfolio:
We will provide additional visibility and insight into our portfolio composition in the future.
See the NAV LP Portal for access to your Investor Statements.
Thoughts on the Market
The Markets Seem “Back”
The crypto markets are rallying, influenced by factors like undervalued projects, the anticipation of a Bitcoin ETF approval, and potential Federal Reserve interest rate cuts.
This surge, exemplified by Bitcoin's climb to $44,000 in December, also stems from the market's previous underestimation of alternative crypto tokens, often a precursor to a bullish trend.
Analysts urge caution, however, citing the unpredictable effects of regulatory changes and the upcoming Bitcoin halving. It's also possible that the ETF could be a "sell the news" event, but this remains uncertain.
Our Strategy: Prepare for Every Market Phase
We are Fine with a Rally and Fine with a Pullback
We embrace market rallies and pullbacks alike, viewing each as an opportunity.
And we should expect downturns, as they are part of “the game”.
Recognizing that downturns are a natural aspect of the investment landscape is important.
Our substantial cash reserves strategically position us to benefit for these fluctuations.
Where We are Focused
At the onset of bull markets, certain indicators hint at which investments might outperform. We see the emergence of compelling narratives and witness potential long-term assets demonstrating remarkable vigor. Market dips present us with opportunities to increase our stakes in these promising investments.
We are currently observing the rise of several key trends:
Real World Asset Tokenization: This trend involves transferring the verified ownership of tangible assets to the blockchain, revolutionizing how we handle real-world assets digitally.
A Multi-Chain Future: Indicators such as Total Value Locked (TVL) and daily transaction volumes on alternative Layer 1 (L1) and Layer 2 (L2) platforms are bolstering the view that multiple blockchains will coexist and thrive in the future.
DeFi 2.0: The shortcomings of centralized exchanges and custodians like FTX, BlockFi, and Celsius have underscored the potential superiority of decentralized finance (DeFi) in providing more secure and efficient trading, lending, and other financial services on the blockchain.
AI Integration in Crypto: The expansion of artificial intelligence has highlighted unique challenges where cryptocurrency could offer solutions. As AI-generated fakes (like deepfakes) become more advanced, establishing the authenticity of data or assets becomes crucial. Additionally, AI's growing need to handle microtransactions seamlessly might find an ideal match in blockchain technology and digital currencies
Educational Content
We will start to release education content around day-day fund activities. This is to help educate LPs on the unique value our fund brings, as well as give insight into on-chain investing approaches.
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