The aim of the MHC Digital Asset Fund is to provide investors with a secure, broad macro exposure to the crypto currency ecosystem. Our stated aim is to capture 80% of the upside in the crypto market while insulating investors from 60% of the downside. In a highly volatile market, we believe this strategy provides investors with a portfolio that will outperform the market in the long run, while reducing the volatility of an investment.
This balance of investments (as outlined below) replicates a traditional finance portfolio by diversifying across large cap investments, fixed income, such as arbitrage investments, and venture capital plays. We believe that we can outperform the market as a whole with such a diversified strategy which has performed as expected for over a year with our personal money and is now available to external investors.
Large Cap Liquid Coins (40-65% of the portfolio)
Macro Exposure The fund will invest a significant proportion of the portfolio in coins with a market cap greater than USD$1bn. This gives the portfolio diversified exposure to the crypto market as a whole, with the objective to outperform the returns of the overall crypto market.
Market Neutral Staking and Derivatives Arbitrage (25-45% of the portfolio)
Pricing Arbitrage This component of the portfolio aims to take advantage of pricing anomalies in derivatives (futures and options) markets and also provides liquidity to market makers to capture a stable return in excess of 15%, no matter the directional moves in the market as a whole. This is the part of the portfolio that aims to generate outsized returns while insulating it from the dramatic moves regularly observed in this market.
New Coin Investments (10-15% of the portfolio)
This portion of the portfolio will be invested in early-stage digital assets that we believe have the potential to produce extreme returns, offsetting those which do not realise their potential.
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To achieve this outcome, our investment portfolio is segregated into three buckets with flexibility to allocate between those buckets depending on market conditions:
Large Cap Liquid Coins (40-65% of the portfolio)
Macro Exposure: The fund will invest a significant proportion of the portfolio in coins with a market cap greater than USD$1bn. This gives the portfolio diversified exposure to the crypto market as a whole, with the objective to outperform the returns of the overall crypto market.
Market Neutral Staking and Derivatives Arbitrage
(25-45% of the portfolio)
Pricing Arbitrage: This component of the portfolio aims to take advantage of pricing anomalies in derivatives (futures and options) markets and also provides liquidity to market makers to capture a stable return in excess of 15%, no matter the directional moves in the market as a whole. This is the part of the portfolio that aims to generate outsized returns while insulating it from the dramatic moves regularly observed in this market.
New Coin Investments (10-15% of the portfolio)
This portion of the portfolio will be invested in early-stage digital assets that we believe have the potential to produce extreme returns, offsetting those which do not realise their potential.
Request Information Memorandum
The Trustee of the MHC Digital Asset Fund is MHC Digital Fund Services Pty Limited. The Trustee of the MHC Digital Market Neutral Fund is MHC Digital Fund Services B Pty Limited. The Manager of the two funds is MHC Digital Finance Pty Limited. Each of these entities is an Authorised Representative of M H Carnegie & Co Limited AFSL 411216. APIR Code MHCX826AU. © 2021 All Rights Reserved.
