Invictus Capital’s offering includes 7 diverse and unique investment funds that range within the field of alternative investments. All funds offered are tokenized, with no minimum investments, making them easily accessible to all investors, while simultaneously democratizing the world of finance and allowing exposure to cryptocurrency investments, hedged investments, gold, dollar-based interest through margin lending, and solar infrastructure in emerging markets.
As investors intrinsically have different needs, the following funds are introduced, allowing for investor diversification.
The funds on offer:
– Crypto20 (C20): the first Invictus fund and first tokenized crypto index fund worldwide. C20 tracks the top 20 cryptocurrencies in the market, investing in the various funds by market capitalization, with holdings being capped at 10% and rebalanced weekly. This fund excludes stablecoins.
– Crypto10 Hedged (C10): a derivation of the C20 fund, that allows for a cash allocation ranging from 0-100% to hedge against cryptocurrency volatility. The crypto index fund aims to ride the bull market waves, while also limiting the drawdown risk. The fund holds the top 10 cryptocurrencies weighted by market capitalization, excluding stablecoins, withholdings capped at 15%
– Bitcoin Alpha (IBA): This fund allows investors 1x exposure to Bitcoin and is designed to outperform a buy-and-hold strategy over the longer term, through the use of an options strategy. Monthly, this fund purchases insurance in the form of put options that aim to limit the downside risk to around 10%. This insurance cost is covered by the sale of call options that cap upside to the region of 30%.
– Hyperion (IHF): This fund invests in early-stage blockchain startups, allowing investors to access a portfolio of exciting companies utilizing blockchain technology. The fund foregoes high barriers to entry as it uses a tokenized structure, allowing almost infinite divisibility of the funds’ value.
– Margin Lending (IML): this fund aims to maximize the interest income on USD and USD equivalents with zero anticipated drawdown risk. The fund generates a return by providing secured loans to traders looking to open leveraged positions. The collateralized nature of the loans means there is near-zero risk involved.
– Emerging Markets Solar (EMS): This fund aims to generate stable and consistent returns for investors over the long term, while investing in solar energy projects based in emerging markets and developing communities, creating a positive social and environmental impact.
– Gold Plus (IGP): This fund allows investors a cost-efficient, secure way to have exposure to the gold market, allowing a strategic asset allocation of up to 10% interest bearing cash. The fund aims to outperform gold through margin lending activities on the underlying assets, along with taking advantage of arbitrage opportunities between markets.
Constructing your perfect portfolio comprises different factors, one being diversification. There is significant value in spreading your risk across various assets to avoid concentrated exposure. Diversification is arguably the most important factor and is achieved by adding uncorrelated assets to a portfolio.
Another important factor relating to your portfolio, is the risk-return appetite of the investors, by addressing their risk tolerance and risk capacity. If a high risk/return profile investment is made, it should be accompanied by discipline to let the investment time run its full course, even in the face of adverse performance.
Determining which investor category you are in, high, medium, or low risk, is critical to decide further which Invictus funds would most suit your investor profile. The more you allocate to crypto investments and venture capital, the less towards stable income such as IML and safe- haven assets such as gold. Due to the nature of blockchain and the structural liquidity, the Invictus Capital products pose no material concern, allowing for no lock-up periods and 24/7 liquidity for investors to enter or exit the funds.
Within the crypto investment class, there are currently three different funds offered, Crypto20, Crypto10 Hedged, and Bitcoin Alpha. When navigating these funds, one needs to pay attention to the investors’ time horizon, liquidity needs, and risk tolerance.
When referring to time, C20 has the greatest return over long periods and is less suitable for short-term investments due to its drawdown events. Bitcoin Alpha is better for shorter periods as it provides drawdown protection. However, C10 remains the best choice for short term investments, due to the funds’ cash hedging algorithm.
If you are interested and want to find out more, sign up on invictuscapital.com to gain access to our investment platform, or feel free to ask any further questions online via our live chat.