From The Fund Manager
Week #26 marks six months of ongoing trading. We started out with some good strong trades, and we did see a few nice ones scattered about the week. However, we had quite a few failed hedges and a couple of them were quite large. All in all, we still end the week in profit and though it wasn’t the largest we have seen, was still good to end in the green.
Earlier this week we made the announcement that ‘Countinghouse Fund is pleased to appoint Every Capital to undertake audit of $CHT fund performance. We look forward to the completion of this task in the coming weeks, and the assurance our investors will have with CHT fund performance reports.’ This has been mostly received well, though a few of our Telegram chat members expressed a disappointment that it wasn’t through one of the big four accounting firms. We have chosen to work with Every Capital as we have many synergies and they have a deep understanding of what we do and of the crypto landscape. Their compliance team are properly qualified and licenced, and we look forward to working with them moving forward.
Mintie’s testing has been solid so far with only one glitch with the trade gate detected at this stage and the error was minor and did not affect any trades. The testing will continue longer before we remove the ETH and BTC bias and put XRP trading up to normal risk levels. The bias should prevent this from negatively affecting any week’s performance until the testing is complete.
We now have the keys to our new office, and the fit out process has begun! We look forward to starting the new-year in the larger premises in the heart of the city. At this stage it’s a bit of a construction zone while the tradespeople fit it out to our requirements. We have also had the team from Wisper Connect over to plan out all the wiring and server racks as well as securely connecting us to the world.
We have had a great response to my planned world tour to meet up with some of our investors! I want to also put a big thank you to both Anders and Johan for arranging an investor party in Norway for my arrival, by the looks of their preparations it is going to be one amazing evening. Also a thank you to Pizza Mind, Atom, Pascal and the guys from Evaki Capital (and sorry to anyone I forgot to mention there as there has been a great response) for also arranging meetings, dinners, lunches, drinks, tours, etc. in their local cities. I think I am going to be very busy indeed, and I can’t wait to meet many of you in person! Once I know venues and time, I will make it known so that anyone else can bump into me there, too (as long as that suit the people who have arranged the meet of course).
As you would all be aware of by now, we close shop over the Xmas and new-year period. From the 22nd of December until the 7th of January. Although our office will be empty, the fund never sleeps. Mintie will continue to run over the holidays and we will still have weekly reports. It should be noted that the reports will not have long form letters at the beginning as they normally do but will just have the basic information you need to monitor your investment. The reports will be up to 48 hours late to be published, thank you for your understanding over this time.
Well… We have a lot to do so I best be back to the grind stone! The Countinghouse Team and I would like to wish all of you and your loved ones a safe and happy weekend.
Thank you for taking the time to read this week’s 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: Jonny McKenna on Unsplash