From The Fund Manager
It’s that time already. Time for us to close the office doors for a couple of weeks and shift our focus to family dinners, wrapping up children’s toys in colourful paper and equally decorative ribbons, strange traditions about who to kiss under particular indoor foliage, putting lights and glass balls on fir trees and saying what you say every year to the people you only see at Christmas, “We should really catch up more often”. Well… That is true for most of the Countinghouse team, but Mintie never rests and she will be busy over the holidays and I will be heading around the world to meet up with as many investors as I can. So, I hope to see you there! Well let’s move on to this week’s performance.
It was great to see a more bullish market this week, with about 4 really significant rallies after a quieter start. Mintie was able to convert, in most cases, most those rallies into yield. Of course the world of hedging isn’t perfect and we had some loss trades as well, but overall a strong end before we close the office before the Christmas break. As mentioned in previous reports, the algorithms will still run and trade during the holidays, but the reports will be simpler and may be up to 48 hours later than normal. Of course I am sure no one will notice as you will all be too busy with festive activities and family gatherings.
For this week, we prepared all the data and reporting to send off for the audit and the audit people has already begun their work. They have asked for some supporting documents to be supplied to be able to finish it off and I have just sent that off before writing this letter. It is possible that by the time you are reading this report the Audit has already been published. If not, it should soon be available for you to peruse as they are still confident it should be published before the holidays. It is nice to have the first audit all sorted and we hope it adds more value for investors and prospective investors alike.
It’s great to look back on a year like we have had and see the growth of the fund. It is also just as exciting to look forward to next year with our new projects on the horizon! We will have our new fund unveiling itself next year, which will be a great option for some diversification for our investors going forward and with a very different structure, as we are hoping to help some of our existing and new investors to build a passive income as opposed our existing offering of pure capital growth. Mintie won’t be the main player in this new fund, but not to worry as we are building a very different type of fund, whilst applying some very Countinghouse style thinking to it. I think you will all be as excited as we embark on this new project and once that is all up and running, we can focus on our master strategy for Countinghouse and we will invite you to join us as we try to take on the world!
Another thing for the New Year will be our new office. We will have new team members and with that, hopefully, we will have more man-power to produce vlogs, etcetera. Soon, it shall be donning a nice big Countinghouse logo at the top, too! Here’s a picture of the building from the front, bit of a crummy picture from the realtor though. I think it will look much nicer with a big Countinghouse logo at the top.
More in 2019? You bet! We are planning on giving back in a more concentrated way starting next year, where we will be using part of our company’s profits to help other local businesses we have connections with to begin fundraising events for local and global charities and groups doing their best to make the world suck a little less. There will be a part of our website dedicated to philanthropy and if you want to be part of any of the events or want to donate some time, skill or money to any of the causes we back, then please touch base with us next year and help us bring more liquidity to those organisations that really need and deserve it.
A lot to look forward to in the Countinghouse world, but I best stop taking up your time as you have a lot be doing in your own world, too!
The whole Countinghouse Team and its partners would like to wish all our investors and the loved ones a very safe and happy holiday period and I hope you can all spend some time with the ones that matter to you most.
Thank you for reading 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: Ian Schneider on Unsplash