From The Fund Manager
Now that is a great week!
Almost all the growth from this week was primarily from two market dips. After that, we had a few other trades, but they did not eventuate into any significant result.
What we would ideally like to see is for a recovery of the major crypto currencies over the next few weeks. Not because it would be any more profitable than having further drops, but it would be good to help keep confidence in the crypto markets, and return some value to individuals with large crypto holdings or savings.
The team have all chipped in with designing the new policy around buybacks. It looks like it has covered most bases and should be easier for both investors and the fund. This will be published today, so please keep updated.
We are now working on a new policy around report auditing. It is early days right now, but I think we can set up this policy in such a way that it delivers the value the investor community is looking for without being overly cost and cumbersome to the fund. This of course also requires discussions with third party companies, capable of such an audit and getting their professional feedback also. We will update you as time goes on and we should have an ETA for that policy within the next couple of weeks. I know a week or two is a long time on the internet, but your patience on the matter will be much appreciated. We are in fact a lean and mean team with a lot of day to day commitments in running of the funds.
With LATOKEN on the horizon, we are getting a rough idea on how many people would be interested in a Countinghouse meet up. If you would be interested in attending, then please register your interest via the event link. Having already received a really positive response to the idea of another meet up, we would love to see as many of you there as we can.
Also, it’s great to see that the market is becoming more efficient and we are seeing close-to-liquid values trading on current smaller exchanges. Take ForkDelta for example, there is a clear trend up along the growth of the fund (plus the usual buy and sell wave effect). I have made a graph showing the most recent trades from ForkDelta to illustrate this point.
The team has also started working on updating our website post-ICO, which will now be geared towards the secondary market audience.
That’s it from me for the week. Thanks for taking the time to peruse the report and I’ll have more to say next Friday.
Market Activity Snapshot
Weighted Average: 0.002447868 ETH or USD$0.72 per CHT
Non-Weighted Average: 0.002225002 ETH or USD$0.65 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).
Credit: Photo by Mike Kononov