Thanks to our excellent achievements in 2023, we are delighted to have collaborated with Moneymag.chhttps://www.moneymag.ch/algo-capital-asset-digitali on a highly engaging article that delves into various business cases from our performance last year here is the output ( translation from Italian version) :
Investing in digital assets while containing systemic risks and eyeing performance with a +40% in *2023
A fund to access emerging technological sectors (Bitcoin, blockchain, AI) through a regulated investment vehicle that diversifies and reduces risk. The solution is Algo Capital.
Investing in digital assets while attempting to contain the risk associated with the asset class and operations poses a challenging task, considering the technological complexity and the rapid evolution of tools connected to blockchain, ranging from Bitcoin to artificial intelligence to the metaverse. Among the innovative options that have emerged in the market, the "Millennials Multi Strategy Fund" managed by Algo Capital stands out. This hybrid fund hedge fund focuses on a wide range of emerging technological sectors and offers investors the opportunity to participate in rapidly growing markets through a regulated investment vehicle, facilitating the evaluation/selection process and providing diversification in continuously evolving sectors. The success of Algo Capital is attributed to the fund's investment philosophy, emphasizing active management and an innovative approach. Let's explore how it works in detail.
How to invest in digital assets: Diversify to contain risk
To invest in digital assets with moderated risk, Algo Capital adopts an active investment strategy, the "Millennials Multi Strategy Fund," based on careful selection of the best global players in blockchain-related sectors. Diversification is achieved by choosing the most promising funds in sectors such as the metaverse, web 3, artificial intelligence, gaming, and cryptocurrency trading. The first selection phase is quantitative and focuses on over 1,000 thematic funds, emphasizing macro strategies. The second phase concentrates on compliance and risk management, identifying funds that adhere to rigorous structural and compliance standards. This thorough process reduces the list to approximately 100 candidate funds in the Digital Assets hedge fund sector. The final phase involves detailed due diligence and continuous monitoring of selected managers. This targeted approach allows investors to access new market opportunities through a single regulated investment vehicle, simplifying the process and providing diversification in continuously evolving sectors.
How Algo Capital works and results (+40% in 2023)
The Algo Capital management team plays a crucial role not only in selecting third-party funds in which to invest approximately 60% of the portfolio but also in actively managing the fund's liquidity (the remaining 40%), carefully monitoring timing and market opportunities. This tactic proved particularly profitable in 2023 when the portfolio remained 50% liquid until August. Subsequently, taking advantage of favourable market sentiment, the fund accumulated positions in Ethereum (ETH) and Bitcoin (BTC), in addition to investing in the gaming and metaverse sectors. By the end of December, the portfolio was invested at 97%, demonstrating the value of active management over a passive approach. Currently, the fund is invested at 90%, and the partial liquidation of positions in the gaming and metaverse sectors has resulted in an average profit of 40%, highlighting the effectiveness of the implemented strategy.
This business case underscores the tangible benefits of active management and provides a clear understanding of the fund's philosophy, positioning Algo Capital as a pioneer in the digital technology revolution. In conclusion, Algo Capital's "Millennials Fund" offers investors an innovative way to participate in digital assets while containing systemic risks, leveraging an active management strategy and careful selection of the industry's best players. Its ability to successfully navigate market dynamics, as demonstrated in 2023, places this fund in a distinctive position in the digital investment landscape, attracting those looking to explore emerging opportunities without assuming the risks of direct management.
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