There has certainly been no shortage of excitement in the crypto market during the first half of 2021. With a meteoric rise to all-time highs followed by extreme downside deviation from mid-May, the crypto market has been delivering on the volatility that it is infamous for. When investing in such a volatile asset class, investors need to have a well-diversified portfolio with sufficient hedging mechanisms to weather difficult times and prevent emotional biases from eroding valuable returns.
Invictus Capital, the retail-focused alternative investment manager, recently released its much-anticipated second quarterly report for 2021. The report contains an in-depth analysis of both the global and macroeconomy, crypto markets as well as a full review of the Invictus Capital funds over the quarter.
Despite the quarter’s turmoil, the Invictus Capital suite of funds continued to offer investors exceptional returns, with the Hyperion VC (IHF), Margin Lending (IML) and Crypto10 Hedged (C10) Funds all performing exceptionally well. In addition, Invictus Capital offers a range of funds that are spread across the risk spectrum. Whether you are risk-averse or risk-seeking, there is a fund that caters to your specific long-term investment needs.
Some of the notable highlights for the funds include:
The suite of Invictus funds delivered a commendable performance for the second quarter, with an average return of 9.85% across the seven funds.
Since the Hyperion Fund’s (IHF) inception in June 2018, the tokenized venture capital fund has returned over six times for its token holders, with an eye-watering appreciation of 89.9% for this past quarter alone.
Despite the Crypto20 (C20) index fund declining alongside the broader crypto market over the quarter, C20 managed to outperform Bitcoin (BTC) by over 32% to see the quarter through. Furthermore, the proceeds of C20’s yield generation tactics outweighed management fees over 10-fold, continuing to offer investors unrivaled value for constructing their holistic crypto portfolio’s base.
The Crypto10 Hedged Fund (C10) remains a stalwart of many Invictus investors’ portfolios for its demonstrated ability to counter the Achilles’ heel of crypto investing — sharp drawdowns. This was again made clear this quarter, with C10 managing to post a 5% rise over the quarter while its benchmark registered a 16% decline.
The Bitcoin Alpha Fund (IBA) succeeded in its objective of outperforming Bitcoin during periods of sharp drawdowns, with the fund beating its benchmark over the quarter on the back of strong May performance.
The Margin Lending Fund (IML), Invictus’ leader in risk-adjusted returns, achieved 12.87% annualized net return since its inception, with a near-zero drawdown. This beats any of the passive U.S. dollar yield returns offered in the crypto market by competitors.
Invictus Capital’s assets under management (AUM) have continued to grow alongside these stellar fund results, with an average of $145 million in AUM over June. Buoyed by the surge in new investors signing up to the Invictus Investor portal, this trend looks set to continue over the rest of the year as the team rolls out consistent platform upgrades and new services to its local community.
Over the past quarter, these new features and products included greater functionality for the Invictus Wallet and the launch of the first phase of the Invictus Yield Vault in partnership with Invictus Alpha. The Yield Vault allows investors to passively earn up to 10% per year on their crypto deposits, an incredibly attractive rate for those looking to grow their crypto holdings over time. For more insight and comparison of the Invictus Yield Vault’s rates against our competitors, see our recent article.
The highlight of the current quarter’s roadmap is the release of an Android and iOS Invictus Capital app, allowing you to keep track of your investments and interact with the platform securely via your smartphone or mobile device.
Finally, Invictus Capital is further delighted to announce our strategic seed investment in a new and promising Solana-based non-custodial asset management protocol that allows anybody to launch a hedge fund, or invest in other users’ funds. Aptly named SolStreet, the protocol aligns with the Invictus vision to democratize access to investment opportunities. Our internal teams have been providing incubation and support to make the project an overwhelming success. The platform will soon be in an early Alpha version on Solana devnet, and Invictus will be the first major crypto-asset manager on the platform. Being hosted on the lightning-quick Solana blockchain, the protocol promises to solve the scalability and performance issues that have hampered previous attempts at successfully creating similar protocols. More broadly, the project aims to encourage and reward responsible investing and help eliminate many of the issues plaguing Wall Street and the wider traditional asset management industry that often leads to investors getting a poor deal. To get involved in the Alpha testing and learn more, read the Medium announcement here or sign up for the newsletter here.
Author - Andrew Knight: VP Analytics, Invictus Capital