From The Fund Manager
We had a mixed week with a good start and end, but stagnation through the 20th and 21st. Overall, it was a good week, which ended in a net positive result. We did not see the same results as the week before, despite a lot of volatility. Sometimes, that is how it goes with trading -- You can’t win them all.
The team has started work, going through all the feedback and suggestions for the buyback policy. As it stands, we have so much to still work through that we won’t be able to publish a completed revised policy today (as we had hoped to do). There is a lot to process with many opinions going against others, etcetera, as well as unanticipated concerns requiring new sections of the policy to cover. In revision, we have realised we need to make a process that will work for fiat investors also, without causing any confusion when we execute buybacks. So stay tuned, we are striving to publish the update as soon as possible. We sincerely apologize for the delay.
Chris has been continuing his work on making some changes to enable more adoption from a secondary market. This involves some experimenting and tweaking to achieve, but you will continue to see some changes (mainly to the website) along this train of thought. Some sections will come and go depending on how much use and value investors are getting out of it.
On another note, I have had some investors ask if the volatility or profitability of trading crypto to fiat pairs dries up, might we then migrate to trading forex? The simple answer is yes, however, this would only be in the case that this would either increase profitability or yield of the fund. This may also be explored if the fund becomes too large to still maintain growth. However, this would have to be considered when the time comes, and taking the fund’s circumstances into account.
That is all from me for the week. Thank you for taking the time to peruse this week’s report.
Market Activity Snapshot
Weighted Average: 0.001846792 ETH or USD$0.51 per CHT
Non-Weighted Average: 0.001855000 ETH or USD$0.52 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 Andre Francois