Licensed & regulated by the Monetary Authority of Singapore (CMS100806)

FUND

 

ALL WEATHER CRYPTO FUND | SP

MARKET NEUTRAL ABSOLUTE RETURN DIGITAL ASSET STRATEGY

Investment Manager:    

PIVOT Fintech Pte. Ltd. (201716150D) holds a Capital Markets Services license (CMS100806) and is regulated by the Monetary Authority of Singapore.

A FUND FOR ALL MARKETS

The Novum Alpha All Weather Crypto Fund is a market neutral digital asset investment strategy that aims to arbitrage the spread between spot and futures prices on digital asset markets.

The Fund seeks to delivery consistent capital gains of between 12% to 36% per annum by capturing the spread through buying digital assets and selling their futures contracts and vice versa.

Algorithmic trading programs scour the spot and futures markets 24/7, automatically deploying trades to capture spreads where available.



INDICATIVE PERFORMANCE AT A GLANCE

The Novum Alpha All Weather Crypto Fund stakes out opportunities to profit from the spreads between digital asset spot and futures prices, entering positions only when spreads are present and automatically hedging each position to effectively eliminate the prospect of losses or drawdowns.

BACKTEST RETURNS

23.88%

over 20 months

SHARPE RATIO

6.71

over 20 months

BACKTEST ANNUALIZED

14.69%

over 12 months

BACKTEST DRAWDOWN

0.00%

over 12 months

Backtest returns are derived from live-traded proprietary capital but must be interpreted purely as a backtest and not inclusive of fees. The Novum Alpha All Weather Crypto Fund (“the Fund”) will be administered using investment policies, objectives, guidelines and restrictions that are in all material respects equivalent to those used when proprietary capital had been traded. However, because the trading using the proprietary capital was not via a registered mutual fund, such trading was thus not subject to the same investment restrictions as may be applicable to the Fund. If it had been, the performance may have been lower. Past performance is not indicative of future returns. Backtest performance is not indicative of future returns. Please see the Offering Documents for risk disclosures.

Quarterly Backtest Performance 1 July 2020 - 11 Mar 2022*

The Novum Alpha All Weather Crypto Fund stakes out opportunities to profit from the spreads between digital asset spot and futures prices, entering positions only when spreads are present and automatically hedging each position to effectively eliminate the prospect of losses or drawdowns.

JAN - MAR APR - JUN JUL - SEP OCT - DEC
2020
+4.40%
+4.27%
2021
+6.99%
+7.06%
+0.58%
+0.46%
2022
+0.12%^

* Backtest returns are derived from live-traded proprietary capital but must be interpreted purely as a backtest and not inclusive of fees. The Novum Alpha All Weather Crypto Fund (“the Fund”) will be administered using investment policies, objectives, guidelines and restrictions that are in all material respects equivalent to those used when proprietary capital had been traded. However, because the trading using the proprietary capital was not via a registered mutual fund, such trading was thus not subject to the same investment restrictions as may be applicable to the Fund. If it had been, the performance may have been lower. Past performance is not indicative of future returns. Backtest performance is not indicative of future returns. Please see the Offering Documents for risk disclosures. ^ Backtest returns for period January 2022 end on 11 March 2022. novumalpha.com NOVUM ALPHA ALL WEATHER CRYPTO FUND -6

INDICATIVE BACKTEST GROWTH OF US$10,000 INVESTMENT*

INDICATIVE RETURN ANNUALIZED RETURN SHARPE RATIO HISTORICAL DRAWDOWN
NOVUM ALPHA ALL WEATHER CRYPTO FUND
23.88%
14.69%
6.71
0.00%

* Backtest returns are derived from live-traded proprietary capital but must be interpreted purely as a backtest and not inclusive of fees. The Novum Alpha All Weather Crypto Fund (“the Fund”) will be administered using investment policies, objectives, guidelines and restrictions that are in all material respects equivalent to those used when proprietary capital had been traded. However, because the trading using the proprietary capital was not via a registered mutual fund, such trading was thus not subject to the same investment restrictions as may be applicable to the Fund. If it had been, the performance may have been lower. Past performance is not indicative of future returns. Backtest performance is not indicative of future returns. Please see the Offering Documents for risk disclosures.

WHAT IS A CASH-AND-CARRY TRADE?(BACKWARDATION)

The cash-and-carry arbitrage strategy is a market neutral strategy that exploits inefficiencies in the digital asset spot and futures market.

It works by combining a long position in the spot market and a short futures position when the market is in contango – a condition where the futures price of a digital asset is higher than the current spot price, capturing the spread.

As expiration of the futures contract nears, that spread between the spot price and the futures price starts to converge, providing relatively riskless returns.





WHAT IS A CASH-AND-CARRY TRADE?(CONTANGO)

When markets are in contango, trading algorithms automatically and simultaneously buy the digital asset (spot) and sell the futures contract (short) to capture the spread, ensuring a market neutral position.

As the futures contract gets closer to expiry, the spot price and the futures price converge, and the trading program automatically unwinds the trade by selling the spot and buying the futures contract to square off and generate the profit.

WHAT IS A CASH-AND-CARRY TRADE?(BACKWARDATION)

During periods when the market is in backwardation, the spot price of a digital asset is higher than its futures price, a rev erse cash-and-carry arbitrage will sell the digital asset (short) and buy the long futures position.

It works by combining a long position in the spot market and a short futures position when the market is in contango – a condition where the futures price of a digital asset is higher than the current spot price, capturing the spread.

As expiration of the futures contract nears, that spread between the spot price and the futures price starts to converge, providing relatively riskless returns.





WHAT IS A CASH-AND-CARRY TRADE?(CONTANGO)

When markets are in backwardation, trading algorithms automatically and simultaneously sell the digital asset (short) and buy the futures contract (long) to capture the spread, ensuring a market neutral position.

As the futures contract gets closer to expiry, the spot price and the futures price converge, and the trading program automatically unwinds the trade by buying the spot and selling the futures contract to square off and generate the profit.

HOW IT WORKS

OUR EDGE

  • Automated systems execute complementary spot and futures positions simultaneously to ensure market neutrality
  • Non-directional trading strategy seeks to generate returns in bull, bear and rangebound markets
  • Active arbitrage of market inefficiencies for consistent returns

AUTOMATED ADVANTAGE

Because the digital asset markets never sleep, automation is the only way to ensure that cash-and-carry opportunities are captured 24/7. Our trading bots scour price information and order books to determine spread availability and algorithmic trading tools size trades accordingly. Trading algorithms enter and exit positions automatically according to preset profit targets.

FUND DETAILS & INVESTMENT TERMS

Fund Details
Domicile
Cayman Islands
Subscription Currency:
US$*
Denomination:
US$*
High Water Mark:
YES
Minimum Investment:
US$100,000
Investment Terms
Management Fee:
2.0% p.a.
Performance Fee:
20.0%
Subscription Fee / Redemption Fee:
NONE
Lock-In:
NONE
Short Term Trading Deduction (1st Year)
5.0%

*Other subscription currencies and/or digital assets may be accepted at the sole discretion of the Directors of the Company, please contact the Investment Manager for more information.