From The Fund Manager
What a busy week it has been for the fund. We have been making structural changes in the background, began processing all the bounties, and we have also been snapping up some great low priced CHT to profit the fund as bounty participants decided to sell their haul on to the exchanges at lower than liquid value.
Fund performance this week was a little slower compared with the last few, but still recording a positive result of 1.41%. Just like with the bigger weeks, sometimes you have smaller weeks, too. We will also have to make some changes to the reports soon also, to show the buyback holdings and how that increases the token value, so keep an eye out for that over the next few weeks.
Chris has reported to us, some suggestions from our investors on Telegram around improvements to the reporting of the fund. We are taking all these suggestions and recommendations into consideration and are pricing up some 3rd party support where needed. We want to make any changes in reporting to be of benefit to our investors and the market and so these changes will have to be made one at a time over time to avoid error or confusion. We would like to thank you for your suggestions and patience here.
We have noted some very low priced CHT offered to the market from the bounty holders – simultaneously, we have also seen investor behaviour that we would expect in buying up these cheaper tokens. Countinghouse Fund have also been buying up CHT at lower prices to bring profit to the fund. So our expectation is that we will see even more BUY positions, until the price settles back to its normal market position.
That’s all from me, please peruse the below report at your leisure and you will hear from me again next week.
Market Activity Snapshot
Weighted Average: 0.000700056ETH or USD$0.30 per CHT
Non-Weighted Average: 0.001180525 ETH or USD$0.51 per CHT
Valuation – Jae Jun Method
Fundamental value (sometimes referred to as intrinsic value) is a calculation to determine the actual value of a share, unit or in this case a token when looked at as an investment.
We have chosen the Jae Jun Intrinsic Value Formula. The main reason we like the Jae Jun is because it is one of the most conservative calculations there is.
Now we have kept to how this is traditionally used and that is to base it on a 10 year return, factoring in the yield reducing over time. We have also taken an extra step to be even more conservative on this calculation; Jae Jun reduced the ‘no growth PE ratio’ from 8.5 to 7 but due to the increased volatility in the crypto market we think it is more prudent to reduce this value all the way to 1 (this value operates as a multiplier in the calculation so reducing it to one is very significant in the results the formula we return).