Introduction. We invest in cryptocurrencies

Transcription

1

2 Introduction We invest in cryptocurrencies Cyber Capital Fund A is an Amsterdam-based investment fund that specializes in cryptocurrency investment. We actively manage a diversified portfolio, consisting of more than fifty different types of these digital tokens. There is a great variety of different cryptocurrencies, each developed for different purposes, based on different fundamentals. Cyber Capital thoroughly analyses those fundamentals and invests in cryptocurrencies that have a promising value proposition, providing utility to its users. Participants in the fund are investors who are looking for exposure to a well secured, diversified range of cryptocurrencies, and should view their participation in the fund as a medium to long-term investment.

3 Fund summary Inception date: April 1, 2016 Operating under AIFMD-light regime Diversified portfolio of 50+ cryptocurrencies Base currency: Euro ( ) Fundamental analysis Fiscally transparent (Box 3) Actively managed ISIN: NL Reuters Lipper: Long term (3-5 years horizon) Eurekahedge: EH58337 Minimum investment amount: 100,000 Weekly liquidity (every Wednesday) COSTS Management fee: 2% p.a. over AUM No leverage, no shorting, no day-trading Performance fee: 20% p.a. vs HWM Skin in the game: 50% AUM of founders & staff Redemption fee: 2% (credited to the fund)

4 Team Boudewijn Rooseboom Managing Partner Justin Bons Investment Strategist Jan Smit Portfolio Manager Steven Metz Executive Manager Margo Huisman Operational Manager Zev de Zeeuw Quantitative Analyst Alex Fauvel Fundamental Analyst Amadeo Brands Fundamental Analyst Jan-Willem Verhees IT Manager Sten Kalenda Security Advisor

5 Strategic partners The client and financial administration Cryptocurrency taxation is a Although Cyber Capital and Fund A of Fund A is executed by our partner completely new area and requires both fall outside the supervision of SGG Group. They apply the legally qualified specialists. The accounting the Netherlands Authority for the required client due diligence (CDD) on of Cyber Capital BV (the fund Financial Markets (AFM), we still new and existing participants. manager), including its annual need to be compliant with the Furthermore, SGG calculates the financial statement, is therefore Dutch Financial Supervision Act weekly net asset value (NAV) and provided by our partner HVK (Wet op het financieel toezicht). monitors all financial movements and Stevens. Furthermore, HVK assisted Finnius specialises in financial law total solvency of the fund. with the legal structuring of Fund A. and provides us with legal advice regarding these regulatory matters.

6 Why cryptocurrency? Secure and trustworthy Store of value Due to their decentralized nature, cryptocurrencies Because of their guaranteed and predictable supply cannot be manipulated by any one party. cryptocurrencies are well suited as a store of value. Fast, low cost and borderless Total control and ownership Payment with cryptocurrency is faster and much Control of cryptocurrencies lies completely with less expensive than traditional payment solutions. the owner, totally independent from any authority.

7 Why invest in cryptocurrency? GROWTH LIQUIDITY DIVERSIFICATION PROTECTION Innovative developments are Contrary to most asset Diversification spreads risk During times of economic moving extremely fast and classes, cryptocurrencies can and reduces volatility. crisis and uncertainty are constantly gaining more be traded at any moment in Cryptocurrencies are cryptocurrencies tend to traction. We expect market time. The market never non-correlated with traditional thrive. As an independent adoption of blockchain and closes. This high degree of asset classes, providing store of value cryptocurrencies to continue liquidity makes an investment diversification and optimising cryptocurrencies can act to increase over the coming in cryptocurrency highly the risk reward ratio of any as a good hedge against years. flexible. investment portfolio. fiat currency devaluation.

8 Investment strategy Cyber Capital Fund A exclusively invests in cryptocurrencies that, based on fundamental analysis, are expected to increase in value over the long-term. Fundamental analysis includes many factors amongst which; Organisation (team & governance), Market attractiveness, Value proposition, Financials (incl. coin distribution and economics), Implementation timelines and Code analysis. The fund is actively managed and seeks to outperform the reference index for the cryptocurrency market (CRIX). The fund does not go short, uses no leverage and does not engage in day, swing or margin trading. To ensure maximum liquidity and solvency to the participants, the fund does not invest in ICO s.

9 Investment strategy FUNDAMENTAL ANALYSIS QUANTITATIVE ANALYSIS CODE ANALYSIS TECHNICAL ANALYSIS Fundamental analysis We apply quantitative analyses Code analysis enables The fund only employs attempts to determine the to measure performance verification of any technical technical analysis to actual merit of a metrics, such as Sharpe-ratios claims made by optimise the timing of cryptocurrency. and correlations. cryptocurrency developers. when to either buy or sell.

10 Portfolio segmentation The portfolio is divided in segments which are defined by i) their place in the software stack (e.g. protocol, III. Application layer Use cases δy/δx network or application layer) and ii) their primary use Ten X dy/dx Flixxo the maturity and market attractiveness of each of these segments. Fees case. We strive to keep the portfolio closely in line with II. Network layer Building blocks 0X iexec Civic MakerDAO The fund is currently mostly invested in the protocol and network layers as we expect those to benefit most of the network effects, and because the application layer is still significantly less mature. Ethereum I. Protocol layer Base blockchain

11 ICOs Valuation Governments - Users drive valueon quadratically Market Cap Transactions^2 Ethereum Metcalfe's law states that the value of a network is proportional to the square of the number of connected users of the system (n2). ICOs

12 Valuation - Comparison with established competitors Market Capitalisation ($ 15/3/18)

13 Performance as per mid July 2018 Portfolio inception date: April 1, 2016 / Share price: 1, Performance vs reference index (CRIX) : +80%

14 Gross yields in %

15 Performance linear scale

16 Performance log scale

17 Sharpe-ratios 2017 (weekly interval) The Fund s Sharpe-ratio for 2017 was 3,6 CC: Cyber Capital Fund A BTC: Bitcoin BND: Vanguard Total Bond Market ETF IYR: ishares US Real Estate ETF USCI: United States Commodity Index USO: United States Oil SPX: S&P 500 index

18 Correlations 2017 (weekly interval) Cryptocurrencies are non-correlated with traditional asset classes. CC: Cyber Capital Fund A BTC: Bitcoin BND: Vanguard Total Bond Market ETF IYR: ishares US Real Estate ETF USCI: United States Commodity Index USO: United States Oil SPX: S&P 500 index

19 Why invest with Cyber Capital? EXPERTISE DIVERSIFICATION We study the cryptocurrency market 24/7. By managing a diversified portfolio, consisting Our work consists of doing fundamental of more than fifty different cryptocurrencies, analysis, following trends and keeping up we are able to effectively reduce the volatility with all the latest developments. often associated with this new asset class. SECURITY To protect the fund s assets from unauthorized access, the vast majority of our cryptocurrencies are stored in air-gapped cold storage with multi-signature. TRANSPARENCY The client and financial administration is executed by our partner SGG Group, constantly monitoring all financial movements and total solvency of our crypto portfolio.

20 Cyber Capital in the media (click to view)

21 Additional information Articles by Cyber Capital - Sybil and Satoshi - Which of the top 17 blockchains may be deemed securities? - Bitcoin & Blockchains What s the problem? - Classifying and Regulating Crypto-Assets - Vergeet Bitcoin, koop Ethereum Interviews and presentations with Cyber Capital - Cyber Capital Youtube channel

22 Contact Cyber Capital B.V. Herengracht 416, 1017 BZ Amsterdam, the Netherlands +31 (0)