From The Fund Manager
What an incredible week we have seen on the crypto markets with many support levels in the market tested and broken. Mintie converted a good portion of the dips into yield, including a triple-short on Thursday, providing a massive boost to this week’s result! The week was not without its failed hedges as we did have a few, but overall, the conditions were very suited to our algorithms.
The team met with the company performing our audit on Thursday and we are finding synergies between the two companies which may prove to be helpful moving forward, particularly with the new project on the horizon. By the look of things, we will be getting their help with more than just auditing as they are proving to be a very valuable connection for the fund.
Additional details on token value calculation were going to be published in this week’s report, but work around organizing renovations and equipment for the new office has taken most of our time. Whilst we are still compiling documentation for the audit, we have been advised by the audit company that should everything go smoothly, the task could be completed before the Christmas holidays, which is just over 2 weeks away. In view of this, supporting documentation that we were intending to publish will be included in the audit report.
Tests from the new adjustments to the algorithm have been running smoothly and will continue going forward before any risk levels are brought up to full. The good news is we are seeing more trades, more often and depending on how we use the trade gate we could see either slightly less risk or we may keep the same risk levels to capture slightly more profit. We also hope that this, once running at proper live risk levels, will smoothen out the equity line and help to build more consistent weeks.
In the first quarter of 2019, we plan on publishing the fund’s performance results covering the period since inception until the end of 2018. This report will include the finer statistical details, some commentary on these results, and our statistical findings. Of course, this will be a busy time for Countinghouse as we will also be driving our new project. We will keep you updated on this also.
As many of you know, we close the office over the Christmas and New-years period from the 22nd of December until the 7th of January. In that break I am taking a short holiday to the US and have decided to turn it into a round-the-world trip to have an opportunity to meet some of our investors abroad!
26th - 28th Dec: Los Angeles, United States
29th Dec - 3rd Jan: Las Vegas. United States
5th - 7th Jan: Stavanger, Norway
8th - 10th Jan: Berlin, Germany
11th - 13th Jan: Singapore
I will be arranging a meet and greet evening at each city (with the help of some local investors) and I would love to meet you there! To get an idea of numbers to help me prepare, please register your interest in meeting up via our Event Form.
So we’ve had another great week, and I am looking forward to meeting more of our investors in person. So, please do join me if you can.
Have a great weekend and again, thank you for taking the time to read the report!
Market Activity Snapshot
Market Data Source: Thanks to @BazzWatkins
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).
Photo Credit: Christine Roy on Unsplash