After much ballyhoo and anticipation, Digimax Global Inc. (CNSX:DIGI) (OTCMKTS:DBKSF) is on track to launch its long/short crypto Fund at the end of August. More than just another buy & hold investment vehicle, the Fund is aiming to suppress volatility and smooth-out returns for investors—which is almost as important as providing strong returns itself. We asked Digimax Global CEO Chris Carl to provide further insight on how the pre-launch is coming along, approximately one week before everything goes live.
While it remains to be seen how much Assets Under Management (AUM) the Fund attracts to start out, the Fund’s ability to attract capital is virtually limitless should it provide a couple of strong quarters of returns. Powered by the Cryptohawk.ai predictive AI engine, investors have been given a preview of the potential at hand.
Early this month, DigiMax Global reported that for the combined June-July 2021 period, CryptoHawk provided subscribers returns of +44.9% for Bitcoin and +22.1% for Ethereum; this against a net Bitcoin gain of 5.1% and -3.6% loss for Ethereum for the period. This outperformance can be directly attributed to Cryptohawk’s reflexive power to pivot on short terms trading signals, as opposed to tethering itself to simple buy & hold strategy.
As Chris Carl explains, while Cryptohawk’s early gains are impressive, it’s the ability to smooth out the returns that could be the biggest selling point for the Fund:
There is billions and billions—if not tens of billions of dollars right now being poured into crypto. And most of it is institutional money. But the big problem—the number one problem that we hear over and over again is it also scares Fund Managers to death. Because their job is to provide really strong returns, but not high volatility. You know, they don’t want to be reporting that they’re up 15% one month and down 10% the next. And even though they may be only putting crypto as 10% of their overall funds that they’re managing, it’s still can really have a, you know, an accelerated return one month and a really damaging return the next. But they’re looking for ways to be in that market, own these types of asset, but not have the volatility.
Aside from the obvious benefits smoothed-out volatility would provide individual investors, Fund of Funds might be interested in such solutions. A Fund of Funds (FOF) is a pooled investment fund that invests in other types of funds to achieve broad diversification and minimal risk. In this case, the massive volatility in crypto that has sidelined a majority percentage of prospective investors.
Click on the embedded link for more of our newest interview with DigiMax Global Solutions CEO Chris Carl, in his own words