The investment objective is to achieve a high return of 10-15% annually by investing into baskets of very diverse assets, both liquid and illiquid, and incurring a moderate amount of leverage.
The asset allocation and overall risk level is set such that under a stress-test assuming a severe recession the realized return would be no worst than -(10-20)%.
A strict counterparty risk management process is in place that limits the exposure to any one bank, broker, exchange, or crowdfunding investment platform.
Some of the illiquid assets are under-recognized, under-invested, are offering very high returns, yet they are very diversified over many issues and so provide a steady stream of what can only be judged as excessive returns.
Furthermore, some of the assets are bespoke investment opportunities not available to the public.
The fund is passive in the sense that it only invests in books of diversified issues, that it undertakes no active single stock picking, and that no frequent market-timing position changes are effected.
On rare occasions, the fund may enter positions in shares at the Pre-IPO stage or place equity/debt/convertible investments privately.
The fund is active in the sense that the allocation to crowdfunded assets is over-sized compared with their prevalence in the overall investment universe. Generally, manager judgement is exerted when deciding the allocation to the different asset classes, and this allocation can change over time, as the perceived expected return over the coming years changes, and as new asset classes become available to the manager.
The fund invests in, but does not limit itself to: stocks, corporate bonds, government bonds, personal loans, mortgage loans, margin loans, corporate loans, agricultural input financing, invoice financing, real estate debt, real estate equity, start-up equity, …
The fund invests in assets denominated in various currencies, mainly the USD, EUR, and GBP, and also in assets denominated in Bitcoin.
The fund invests in assets located all over the globe.
Tightest cost control achieved via clever negotiations with all third parties.