Just a few more days until we close up the office for the year and unwind a bit for the Christmas holiday period. Well… most of us will be relaxing; Tim is heading off on a bit of an investor meetup tour in USA and Europe, with a sprinkling of Singapore at the end. He’ll get a break sometime I’m sure, maybe in a few more years when he finally lets himself relax. In the meantime I’ll do the R and R for him. You’re welcome Tim.
While Mintie has had some loss-days during our trading history so far, we have managed to avoid a loss-week, with our lowest weekly return being 0.62%, and our highest weekly return being a very rare 13.02% due to a triple long trade being realised at the beginning of that week. As of our last report, we have had an average of 4.67% per week growth, and a healthy 227% growth since fund inception. It has been a good run so far, though Mintie will run into a loss-week sometime statistically. The equity line will still look lovely even then though. Volume on the exchanges has been steadily improving, and the team was very happy to get a TUSD pairing on DDEX to offset the rapid price shift of ETH when investors wish to liquidate holdings. We have moved into processing buybacks with mainly TUSD for this reason as well.
Throughout the last six months, Countinghouse Fund has consistently been advised by other hedge funds to implement Buyback Gates to protect investors from fund arbitrage by investors exploiting our current buyback structure. After considering their advice and assessing our own reasons to implement this new buyback structure, I would like to outline the potential advantages of this new approach.
So much to consider
As mentioned by our business acquaintances using similar hedge fund structures, buybacks implemented without much more structure than a queue could be open to investors using arbitrage on their own holdings at the detriment to CHT value and hence other investors. This is something that can be avoided by implementing a quarterly buyback process. Investors will always have access to the exchanges that our token is listed on to trade at market value at any time, which increases CHT liquidity and volume and provides a far quicker means of liquidation compared to going through the buyback process.
More specific to Countinghouse Fund, and how our algorithm operates, consistently turning off our algorithm to make funds available for buyback requests will also be to the detriment to CHT value and compounding returns. In order for our algorithm, Mintie, to have a good read of market movement, there is a 40 hour waiting phase before she makes a potential first trade. Due to this 40 hour wait time in turning our algorithm off to access broker funds in order to properly distribute funds to CHT holders, we feel that loss of potential compounding and profit should be limited to four times a year in order to keep our equity line smooth and consistent. Congruent to this, we feel that money kept outside the fund in order to process buybacks on a quicker scale is capital that will not increase in value, therefore reducing the profitability of our fund.
Changes made to the policy will be considered when we get back to work next year, where we will hopefully be making the final renovations to our new office located in the heart of Adelaide. This office takes up the top floor to give us the room to both run Countinghouse Fund and employ new staff to run our new venture, which we are tantalisingly close to revealing to our investor group. I’m hoping to announce it late January. For now I can reveal it is finance based but not focused on crypto exchanges. In fact, Mintie will not be the star of the show.
On a more general note, the team hopes the weekly winners in our percentage guessing competition enjoy their super deluxe prizes; they’re finally on their way. Apologies as well for the lack of pictures and Vlogs recently. We were planning to chat to you guys more over Fun Friday lunches, but we tend to get caught up in wine and future planning. Mainly wine? We’ll make an effort to be in touch more after the Christmas break.
Speaking of, I think I see some wine…