From The Fund Manager
This week’s letter is split in to two main sections, a little different then you may be accustomed to. The first section will cover off the week’s performance and the second section details some of the progress and possible solutions to the new fund structure.
For those investors who like to participate in our social media channels please use the hashtag #NewCHT when posting questions and suggestions, this will allow us to collect them over the next week (we may extend for another week), and we will produce a video answering as many as we can. For those not using the social media channels, you can send an email with your questions to firstname.lastname@example.org with the subject as ‘New CHT’ and we will collect these too.
Fund Performance for the Week
This week has shown a positive result after trading the bear at the week’s beginning and then a full switch over to a bullish market to see the week close out almost where it started. The larger movements in the market provided us with excellent trading opportunities where as the smaller moves at the weeks end did yield some profitable trades, but also a fair share of losses. All of this combined to give us another positive yield for the week.
Discussion on New Fund Structure
Countinghouse is very proud to be one of the shining stars in the crypto space over the last 9 months in a very challenging crypto market. Since the inception of the fund, we have overcome many challenges and the team has learnt a lot, especially from our investor community.
When we created the Countinghouse Fund, we envisioned that we would have long term investors, minimal administrative tasks, which would allow the core team to focus on value-added functions like algorithm and trading strategy development. However, we did underestimate the various needs of our investors, covering issues such as audit, buybacks, transparency, governance, security of funds, and even proof of existence of funds.
We have been listening to our investor community, and have adapted our processes and team to cater to these demands to the best of our ability. After much consideration and deliberation, we believe the best way moving forward is to rebuild our offering from the ground up. This will involve the restructuring of the fund.
At this stage, we do not have final details, but would like to communicate our intention and the direction that we will be heading. These are some of the points to be considered: --
A new entity structure will be set up and will have shareholders, instead of fund units. CHT tokens will represent CHT shares, rather than fund units.
Unit holders will now become shareholders.
New entity will have directors, which could include investors with significant holdings that will make up a board.
Shareholders will have voting rights.
New entity will contract Countinghouse Fund to trade their capital, with 12 months’ notice for termination of service.
Countinghouse Fund will review and adjust their fund management & performance fees. Management fees can be reviewed every 12 months.
We propose for the new entity to be a dividend paying fund. We also propose that dividends can start to be paid (even on a monthly basis) once a certain capital size is achieved.
Issues such as share buybacks can be voted on after the restructuring.
Investors interested in increasing their holdings can request to buy units from selling investors.
All investors will need to go through the AML/KYC process within the new entity.
Trading will be paused for 2 weeks as we transfer funds after setting up trading accounts under the new entity.
Overall, we sincerely believe it will be the best way to move forward to improve the CHT offering & value. There’s a lot more in the works for Countinghouse, too, including improved algorithms and risk management modelling. We are going to keep our focus on the ‘run it right and the rest will follow’ philosophy and keep chipping away at this rough stone until we have created something a bit closer to perfection.
Well that’s’ all from us for the week! A special thank you to Mr Chris Yap, who not only has been working tirelessly at his new tasks in analytics for the fund, but also for helping to prepare this letter.
On behalf of everyone from Countinghouse, have a pleasant and safe weekend.
Market Activity Summary
Market Data Source: Thanks to @BazzWatkins
Photo Credit: Dmitry Moraine on Unsplash