Explosive growth alongside peace of mind offered by C10 from Invictus
Drishti Bhagat Apr 20, 2021 01:30
With investor focus shifting towards the next market downturn, investors are increasingly seeking protection against potential future drawdowns. The Invictus Capital Crypto10 Hedged fund (C10) is that protection investors are looking for and holds the answers to many investor concerns. The C10 fund has continued to offer investors unparalleled risk adjusted returns in 2021 with a 119% increase in performance for the first quarter.
With investor focus shifting towards the next market downturn, investors are increasingly seeking protection against potential future drawdowns. The Invictus Capital Crypto10 Hedged fund (C10) is that protection investors are looking for and holds the answers to many investor concerns. The C10 fund has continued to offer investors unparalleled risk adjusted returns in 2021 with a 119% increase in performance for the first quarter.
The C10 fund lost some ground on the benchmark (the top 10 equally weighted cryptocurrencies) in the recent quarter, however this benchmark does not include a cash hedging mechanism and therefore is exposed to significantly more risk, as outlined in the above table. The fund possesses lower volatility as measured by the standard deviation (0.53 vs 0.86 for benchmark), a higher Sharpe ratio (1.87 vs 1.57 for benchmark) indicating superior returns per unit of risk, along with a lower drawdown risk which are all critical traits for a fund such as C10 to produce long term capital appreciation in the face of a potential market downturn.
C10 vs Bitcoin 2021 Q1 Performance:
The C10 token’s net asset value (NAV) increased by 176% in the first quarter of 2021 and currently stands at $7.36 at the time of writing. As the graph depicts, the C10 fund has outperformed the most well known cryptocurrency, Bitcoin (BTC), within the first quarter of 2021 and has done so with far less volatility. This highlights the advantage of an index fund, such as C10, and its ability to realise the greater market performance through exposure to the wider market coverage of alt coins. Furthermore, yield is generated on the fund’s cryptoassets through lending strategies and staking; saving time for any investor who wants to maximise available returns on a diverse portfolio of cryptoassets.
As the current bull market continues to run, a number of investors are looking to manage their risk. The addition of a cash hedge feature further incentivises investors towards the C10 fund as it is a strong mechanism to protect assets in the event of a market downturn. As depicted in the graph above, C10 has fared well during bear markets, highlighting the importance of the cash hedge feature as a useful tool for capital preservation.
Cryptoassets are amongst the fastest growing asset classes and have the potential to generate significant returns for investors looking to build on long term positions. The C10 fund’s exposure to the top 10 cryptoassets, coupled with the dynamic cash hedge strategy and additional yield generation, provides investors with a lower risk instrument to navigate the volatile market while capitalising on stable long-term capital appreciation. Furthermore, the ability of the C10 fund to navigate these volatile market conditions makes it particularly attractive as an ICAP staking opportunity, offering investors an additional 4%-8% on their investment depending on the duration of your stake.
Image source: Invictus Capital Media