The World’s First Fund Of Funds Focusing On Blockchain Technology Investment Opportunities

Invest in Bitcoin

AIP Recommended Product:

Invest in Bitcoin &  Other Cryptocurrencies

Key investment criteria:

  • This Fund offers diverse and broad access to the blockchain technology and cryptocurrencies.
  • The Asset Management team includes experts with over 100 years of combined experience in the fund & asset management industry (Credit Suisse, Citibank, Societe General, UBS, Barclays & Lloyds).
  • The Fund bridges the gap between fiat and crypto-asset classes by applying proven risk management techniques and customizing them to the emerging crypto asset class. Via the Fund, investors gain diversified exposure to this dynamic new asset class by way of the fund’s unique six-prong investment approach.
  • Maximum drawdowns can be reduced applying active Risk Management to a diversified portfolio of underlying Funds/ cryptocurrencies thus creating a smoother investment journey (less volatility).
  • The Fund has strict fund concentration, strategy allocation and liquidity rules limiting maximum exposure single manager, single fund, single exchange & single currency.
  • Management is registered as AIFM with the CSSF in Luxembourg.
Invest in Bitcoin

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In 2019 Bitcoin was the best performing asset worldwide

Bitcoin was a clear winner for investors last year, roughly doubling in 2019*. As a comparison, Gold and the S&P 500 scored respectively a 18% and 28% return. But it was a bumpy ride.

Looking to invest in Bitcoin? AIP Recommends this diversified multi-strategy approach that captures the sector’s development while reducing downside risk – in what is still a volatile and complex sector.

*+92% Source: Cryptocompare.

The Fund bridges the gap between fiat and crypto asset classes by applying risk management techniques and customising them to the crypto emerging asset class.

  • EXPERTISE
    International team of hand-picked professionals with experience in crypto, risk management, banking and funds
  • DIVERSIFICATION
    A diversified multi-strategy approach that captures the sector’s exciting growth while reducing downside risk in what is still a volatile and complex sector.
  • REGULATION
    Set up using a well-established structure in Luxembourg. The Fund has an independent administrator, bank and auditor.
  • RISK MANAGEMENT
    Fully developed risk management framework. Enhanced due diligence model customized for the unique characteristics of the crypto asset class.
  • SCALE
    As the Fund grows, Investors benefit from higher scale rewards as opposed to an individual investment into any of the underlying instruments.

Investment Program

This is the world’s first fund of funds focusing on blockchain technology investment opportunities such as Funds focusing on all aspects of digital currencies and listed companies using blockchain technology.

The Fund has been designed to offer investors full access to the world’s newest and fastest growing asset class with the benefits of sound risk management and portfolio diversification to reduce volatility.

 Investment Strategy

A diversified multi-strategy approach that captures the sector’s development while reducing downside risk in what is still a volatile and complex sector.

NB:

This investment is only available to investors who meet certain net worth or investment sophistication criteria.

Investment Strategy

  1. INDEX TRACKING
    Exposure to multiple crypto currencies offering capital appreciation.
  2. BLOCKCHAIN RELATED LISTED COMPANIES
    Global listed companies that are committing material resources seeking to transform practical business applications through the development and use of blockchain.
  3. TRADING
    Exposure to absolute return type strategies through cryptocurrency trading and exchange arbitrage.
  4. INFRASTRUCTURE
    Exposure to crypto infrastructure companies generating income.
  5. VENTURE CAPITAL & PRIVATE EQUITY
    Exposure to Blockchain Funds with exposure to Initial Coin Offerings and Security Token Offerings: exposure to Private Equity / Venture.
  6. LENDING
    Exposure to crypto and fiat loans markets across crypto exchanges offering high yields.

 

Key Fund Facts

  • Admin.: Banque de Patrimoines Privés
  • Bank: Banque de Patrimoines Privés
  • Auditor: Mazars Luxembourg
  • Legal: Eversheds Sutherland
  • Swiss Representative: OpenFunds
  • Dealing / Liquidity: Monthly
  • Currencies: USD / EUR
  • Registration: CSSF Luxembourg
  • Fund type: Open ended
  • Incorporation: Luxembourg

Model Portfolio

 

Market Report

The Fund ended 2019 with a +11.1% and +17.8% gain (USD & EUR share classes).

The fund’s performance last month was in line with the general market environment.

The Fund’s exposure on PE/VC and its diversification outside Bitcoin were the main factors behind a slight underperformance.

As a result of the short-term declining trend on cryptos, replicating strategies (delta one) were sold so as to increase the weight allocated to arbitrage & multi strategies. Cash was increased too.

The good news

Since launch, the Fund outperformed the Eurekahedge Crypto Currency Hedge Fund Index by 16%.

The Fund also managed to reduce risk (no assets stolen!) and outperform its peers with roughly half the volatility experienced by the index (34% volatility for the fund vs 60% volatility for the index).

While recent performance has been lacklustre, it might be a good time to recall that the recovery potential of the crypto asset class remains compelling.

On a longer-term horizon (several quarters), the current cycle continues to develop in line with previous long-term bull cycles. The current period of consolidation / sideways trading is expected to pave the way for a new wave upwards, that will then lead crypto assets back to the previous highs and beyond.

Therefore, current levels offer attractive long-term entry points for investors willing to build exposure on the crypto asset class, in our opinion.

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