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Weekly Update Report #20

November 2, 2018

 

From The Fund Manager

 

Dear Investors,

 

The fund had a good week trading week. We did not set any new records.  Nonetheless, we still move in the right direction. Not a lot to report as far as trades go. However, there was an instance this week where price did a sharp spike up and down – We had the potential to be in a really profitable move, but instead we registered a small profit instead.

 

As many of our investors are already aware, I am on my coding sabbatical at the moment making improvements to some aspects of the code that we have noticed could be updated, and doing a lot of testing on some new ideas to boost Mintie’s performance. These updates are an ongoing event and every now and then, I will need to take time away for testing and coding. We try to re-imagine new ways of implementing unorthodox trading ideas in our algorithms that would sharpen Mintie’s abilities. This is all coming along well, with only a few hours spent ripping out my hair when I get stuck. As we say: Progress not perfection.

 

I would like to thank one of our investors, Bazz W (Telegram: @BazzWatkins), for his impeccable work in aggregating all trade data for CHT on the exchanges against liquid value.  He has kindly shared some of his findings and spreadsheet tools to the community, and has given us access to this information to use as part of our report in the Market Activity Snapshot section below.

 

This is just one example of how engaged our community of investors are and we, as a relatively small team, are very grateful for this contribution. I am sure you have all noticed by now we are not your usual managed fund, we are sort of the punk rock of hedge funds. We are engaged with our investors, and are able to offer a level of fund performance that is that we hope commensurate the risk level that take, and have found that this is what our investors are looking for. I think this is why we get so much back from our investor community.

 

Good news on the audit front; we just got the all clear from the current firm that they can deal with us being from the Seychelles and we are looking to enter a two year contract for audits on the fund’s performance every six months. It is great to have some positive movement here after a period of stagnation. So it all seems to be going ahead… finally!

 

Just a short address from me this week as I have to get back to my coding and testing.

 

Thank you for taking the time to look through the report and again, thanks to Bazz for his contribution. On behalf of everyone at Countinghouse, we wish you and your loved ones a safe and happy weekend.

 

 

Best Regards,

 

 

 

 

 

Tim
Fund Manager
Countinghouse Fund

 

 

 

Weekly Performance

 

 

Market Activity Snapshot

 

 

 

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 Mirza Babic on Unsplash