Digimax Global Inc. (CNSX:DIGI) (OTCMKTS:DBKSF) launched its long/short crypto Fund at the end of August with much fanfare. The trading brain powered by predictive analytics tool CryptoHawk.ai seeks to provide consistent and outsized returns over time, while reducing volatility in the process. A tall task, but a lucrative one if they can achieve it. While tight market ranges have perhaps suppressed recent strong returns CryptoHawk has been generating, Chris Carl is nonetheless pleased with his Fund’s performance in these early days.
Although Chris has touched on the distinguishing features of DigiMax’s Fund, it’s worth reiterating a key differentiating component. First, DigiMax’s operates a long/short crypto Fund, which is completely agnostic of market direction. Since it is not a long-only Fund and diversified into a portfolio of coins, the Fund should have broad investment interest should performance prove-out. The pool of investment money seeking out high-yields with smoothed-out and consistent returns in the crypto space spans everyone from the individual-accredited to family offices to big institutions.
A successful such Fund could also become a Fund of Funds candidate, which are pooled investment fund that invests in other types of funds to achieve broad diversification and attenuated risk.
Chris also isn’t losing sight of the importance of volatility control to generate returns—which is a key requirement of institutional investors. If theoretical Investor “A” and theoretical Investor “B” both make 25% returns in any given year, how they got there matters.
If Investor “B” produces non-compounded sequential quarterly returns of 50%, (25%), 30%, (30%), while Investor “A” produces non-compounded sequential quarterly returns of 5%, 3%, 11% and 6%, both investors achieved similar annual results. Yet Investor “A” return is far superior due to performance consistency and lack of drawdown. This is the model that CrytoHawk is attempting to replicate.
In other words, DigiMax hopes to achieve a superior Sharpe ratio when compared to similar portfolios or funds with equal or lower returns. Stay tuned—we’re still early days.
Click on the embedded link for more of our newest interview with DigiMax Global Solutions CEO Chris Carl, in his own words