Looking back, Q2-2018 has been a quarter full of challenges for the Swiss-Asia Fund Platform. We finally managed to launch a Crypto-Currency Hedge Fund after many months of moving goal posts and roadblocks. We still have a very strong pipeline of Fund Managers waiting to launch during Q3 and Q4, but more on that when the time comes.
During the first half of 2018 the VIX spike together with the ongoing China/US trade spat has created turbulence reflected in mostly negative returns across the different strategies.
The Judah Value Activist Fund has topped the list again this quarter, up approximately over 70% for the year. Rare Metals, Sunspur and Disciplina have maintained their good form as well, up 12.20%, 3.80% and 3.45% respectively.
Kryptos Alpha, our first cryptocurrency fund which launched in April is up 3.30% as of end Q2. Ddraig Equity Fund among others remained positive, up 1.45% YTD. The Football Finance Note remains in the top 10, at 0.10% YTD despite a coupon of 4% paid to investors last month.
Looking ahead to Q3, we anticipate some of our top performers to stay on track and others to turn things around, providing interesting opportunities for investors.
FUND PLATFORM DEVELOPMENTS
KRYPTOS ALPHA FUND – 01.04.2018. The Kryptos Alpha Fund is an absolute return cryptocurrency hedge fund aiming to maximize returns while minimizing drawdowns.
The fund’s strategy incorporates arbitrage trading of different cryptocurrencies among various exchanges, focusing on price fluctuations; long-short basket trading of cryptocurrencies based on quantitative factor models; providing liquidity and trade volume to multiple currencies at multiple exchanges, earning rebates and bid-ask spreads; and selective participation in ICOs or pre-ICOs of new blockchain companies with significant technological advances.
The fund is managed by Zhuang Sheng Quan, co-founder of Kryptos Associates, a company specializing in providing technology solutions for cryptocurrency trading. Now based with Swiss-Asia Financial Services Pte Ltd in Singapore, Sheng Quan traded currencies and interest rate products before pursuing research in data science. He holds a dual Bachelor’s in Economics and Computer Science from Wharton School, University of Pennsylvania, and a Master’s in Finance from Princeton University.
Migration of our global custody from BNP Securities Services to DBS Custody. We have migrated our global custody platform from BNP Securities Services to DBS during the first 2 quarters of 2018. This was a time consuming and tedious operation as one can imagine. We are happy that this is now behind us and look forward to working on solid bases with the DBS Custody Solution.
FINTECH @ SWISS-ASIA
1. Development of Crypto-Currency Portfolio Management System. In collaboration with Telostat Pte Ltd, a consulting firm specialized in Financial Software development, we have initiated the development of a dedicated PMS for Cryptocurrencies. The PMS connects to all the exchanges via the API’s and automates the complete workflow of the trade lifecycle as well as full reporting flows to the Fund Administrators.
2. Migration of Eze Castle Tradar PMS to Numerix One View Asset Management. We have taken the difficult decision to migrate to a new PMS for the Funds Business. Numerix OVAM offers a fully integrated PMS front to back solution including Risk Management. This solution will further allow us to develop and extend our Fund Platform capabilities.
We look forward to announcing a the new Fund launches and some exciting news for our Wealth Management business next quarter.
On behalf of the Executive Management we wish you all a great Q3-2018 !