Invictus Capital capitalized on the opportunities financial markets offered throughout Q3 2021 with assets under management (AUM) skyrocketing by a whopping 52.38% to surpass $162 million. In a quarter marked by increasing regulatory pressure in the industry, this is an excellent outcome. With all the Invictus funds appreciating throughout the quarter, the simple average return across four open-ended funds was an incredible 18.99%, which is equivalent to an annualized return of 100.45%.
The previous quarter, Q2 2021, was characterized by weakness in crypto markets and a May selloff that saw the Invictus suite of funds demonstrate the value proposition of the various risk-reducing strategies, including C20’s diversified portfolio, C10’s cash hedge, or IBA’s put protection. By comparison, the third quarter offered an opportunity to showcase the funds’ ability to participate in bullish conditions — with the funds not disappointing.
Crypto10 Hedged (C10) fund, which exposes investors to the top 10 cryptocurrencies, closed out with a 22% return at the end of September. Likewise, the world’s first tokenized crypto index fund, Crypto20 (C20), boasted a healthy 38.85% return. Data shows that over the last year C20 outperformed an equally-weighted index by 153.25%, providing a mouthwatering 558.68% return.
The quarter also saw Invictus’ tokenized, closed-end venture capital fund, Hyperion (IHF), finalize the exit from the investment into Ovex (announced in the second quarter). While the fund was not subject to another large upwards revaluation (year-to-date returns are around 162%), the receipt of the associated sales consideration enabled $580,000 in IHF buy-and-burns to take place over the next year, helping support prices on the secondary market. Additionally, the cash in hand will also contribute substantially to the buying pressure behind Invictus Capital’s community token, ICAP, over the following months.
The token already briefly breached the $15 mark over the past quarter. A minimum of $390,000 is already penciled in for ICAP buy-and-burn activity over the next year and is expected to provide significant price support.
While current products continue to perform admirably, Invictus is not resting and continues to develop new fund offerings. Invictus’s forthcoming Decentralized Finance (DeFi) Fund is designed to broadly track the top DeFi cryptocurrency assets across a range of sub-sectors. The DeFi space is projected to expand rapidly as crypto breaks further into the mainstream and begins to displace incumbent players in the multi-trillion-dollar financial industry. The fund will utilize a Core-Satellite structure, with 70% of assets allocated towards a semi-passive index core and the remaining 30% allocated to three actively managed satellites. Expectations are that the new DeFi fund will go live in early 2022.
With the upcoming launch of the new DeFi Fund and the support that the Invictus Yield Vault received over the past quarter, Invictus Capital continues to go from strength to strength, propelled by the company’s rare blend of aptitude and expertise within both the digital asset and traditional financial spaces.
For a full update on Invictus Capital and its fund offerings, please see the quarterly report here.
