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Given the prevailing negativity of crypto market conditions in recent months, the performance of the Invictus Crypto10 (C10) Hedged fund is as commendable as it is interesting to inspect. The C10 fund, being a collection of the top 10 cryptocurrencies weighted by market cap, represents a diversified index of the best cryptocurrency has to offer. As market conditions became increasingly strained over May and June — with BTC collapsing 40% from its April highs — the cash hedging component of C10 really came into its own.
As stated within the Invictus Q2 Report, the C10 fund captured a 5% increase over the quarter, despite the difficult conditions. By contrast, the benchmark equally weighted portfolio saw a 17% decline during this period. This outperformance can be attributed to the successful pivot into cash from the fund’s hedging algorithm, helping avoid much of the market’s liquidation-driven drawdown period. This is a testament to the value proposition the fund’s algorithm offers. This feature once again meant that investor losses during this period were limited — repeating the heroics of last year that saw the fund dodge the March price collapse.
With markets moving into a period of relative calm over the quarter thus far, C10 has seen a slow but steady growth in value congruent with the limited activity in the wider market. This indicates that even in periods of relative stagnation, the C10 fund remains a reliable choice for investors looking to grow their wealth over the long-term, with diminished downside risks. A larger portion of the fund’s assets have been hedged into a cash position since the start of July as markets seek direction, thereby protecting against a likely surge in volatility. However, with conditions flipping more bullish as of late, the algorithm looks poised to start ramping up exposure to crypto in the coming weeks to catch the uptrend.
The C10 token’s relatively steady upwards climb since launch validates investors’ conviction of C10’s enhanced risk-adjusted returns — an incredibly elusive property within the universe of crypto investment products. When compared to its benchmark (an equally weighted index of the top 10 cryptoassets, rebalanced weekly), C10’s standard deviation of 0.61 compared to the benchmark’s 0.94 indicates that C10 has retained lower volatility and thus lower risk. This has culminated in a Sharpe Ratio of 1.58 relative to the benchmark’s 1.31, indicating that C10 provides superior returns for investors per unit of risk to the fund.
This is consistent with the fund’s lifetime average cash allocation of around 50% — a metric that clearly demonstrates how the fund maintains a suppressed volatility profile (with returns to date indicating that long-term returns have not been sacrificed).
Invictus Capital is excited to announce the launch of $5K Fridays, a brand new series of giveaways to celebrate the performance of the C10 fund. Every Friday until 03 September 2021 we’ll be giving away $5,000 (five winners will win $1,000 each). Both new and existing investors are encouraged to enter this exciting competition to stand the chance to win! To enter the competition simply invest in Crypto10 Hedged, a cryptocurrency index fund with reduced risk.
Investors interested in expanding and/or diversifying their portfolio with C10 should visit the fund’s page on the Invictus website. For further reading, please consult the fund’s whitepaper, factsheet and the recent Invictus Capital Q2 Report. Investors can also find a host of informative and helpful Invictus team members on the community Discord server, live text chat on the Invictus website, and the Invictus Telegram channel should they need further assistance or information.
