From The Fund Manager
This week, the fund saw a very stagnant beginning and by Tuesday, the fund was in loss. Fortunately, we had some market volatility to spike up prices, which brought the fund back in the green.
The algorithm was forecasting that the market would go up on Tuesday and it was right. So, we saw a few profitable trades there. Although it is natural for any trading strategy to wear some losses, we would still like to avoid stagnant weeks as we keep an eye on projected fund growth.
For the coming week, as we have had some movement for the LATOKEN listing, we are looking forward to deliver an update when we have acquired the necessary details. Together with tax deadlines, and other projects that we have in the pipeline, the team will have a lot to catch up on next week, including our plans to make a new vlog.
This week also saw the release of our updated buyback policy, where we have tried to balance the suggestions of our investors with the optimised running of the fund. Though, when trying to please everyone you may actually please no one -- We do feel that we have reached a fair and balanced policy. Moving forward, we will continue to gather feedback for future decision making and updates.
Just before we had put buyback on hold, we did receive a few requests for liquidation. These investors have been put on a clearing list, and about 110,000 CHT tokens could be bought back over time starting from as early as September, depending on fund performance, timing considerations, and if our investors still want to take up this option.
Next thing on our list of policy creation is an audit policy. This has been a very interesting road to travel down as there are so many options as far as what the audit can show and explain. Of course, the simpler it is, the lower the cost; the more complex the higher the cost (sometimes stratospherically high). What we want to land on is an audit that offers both value and reassurance. When I talk about value I mean to say that it contributes to the community's understanding, not just a confirmation that we gave correct data in our reports.
It has been a tough week, but we managed to come through with a positive growth result and we are looking forward to next week. That’s all from me for now, thank you for taking the time to read this report.
Market Activity Snapshot
Weighted Average: 0.001760009 ETH or USD$0.49 per CHT
Non-Weighted Average: 0.001760009 ETH or USD$0.49 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 Carlos Irineu