Portal Asset Management, sponsor of the Portal Digital Fund, a global fund of digital asset hedge funds, has launched the Horizon Index Fund, which is targeted at family offices, sophisticated and institutional investors seeking passive, broad market exposure to the digital currency space.
The Portal Digital Fund, ranked third in the global Multi-Advisor section of the BarclayHedge Alternative Investment Rankings for 2020, was also ranked by Preqin as the No1 Fund of Hedge Funds in Asia Pacific in H1 2021, and has been operating since early 2020.
The Horizon Index Fund (the Fund) is a portal for investors to receive a transparent spread across the top 25 cryptocurrencies and digital assets ranked by market capitalisation – with all stablecoin currencies, intended to maintain price parity with a target asset class, such as USD, or gold – removed. Unlike many listed futures crypto indexes and thematic ETF’s, the Fund’s portfolio is rebalanced every 30 days to maintain relevance across the assets and to maintain equal weighting across its spread, representing a 4 per cent position in each.
The top 25 cryptocurrencies are valued at over USD2.4 trillion (USD), accounting for over 77 per cent of the combined market capitalisation of the total industry. The Fund was designed as an alternative to the immense investment bias toward Bitcoin and Ethereum given their dominance in the overall market.
“Following the success of the Portal Digital Fund, which is a highly curated fund of uncorrelated, digital asset funds designed to moderate the extreme volatility of the space, investor feedback was for an offering with direct exposure with unrestricted volatility to the 25 largest cryptocurrencies and digital assets, importantly reweighted on a monthly basis to stay up to date with market movements,” says Portal Asset Management CEO Deryck Graham. “The Horizon Index Fund does just that and is designed for those early adopter and innovative investors such as family offices, specialised fund managers and sophisticated investors who are used to using ETF’s for building out their Equities and Property portfolios. Knowing that digital assets are now valued at USD2.7 trillion this represents 23 per cent of the USUSD11.8 trillion global Gold market cap and as such is considered by forward thinking investors as a required asset class that forms part of the alternative allocation in a balanced portfolio. Such a weighted fund sits easily in a global portfolio and allows for set-and-forget access.”
“The Fund has been designed to deliver market-related volatility of 75 per cent-plus annualised,” says Portal Asset Management’s Executive Director Mark Witten. “The Fund’s primary function is the removal of the complexity, custody risk and inefficiency associated with investing in digital assets and cryptocurrencies. Backtesting the strategy performance reveals such a fund would have returned investors 253.7 per cent YTD in 2021. The Fund aims to achieve a broad, diversified exposure to the space via a passively managed fund that has low fixed costs and no additional performance fees.”
The Horizon Index Fund is now open for accredited sophisticated and institutional investors. The Portal Digital Fund is a lower volatility open-ended fund and is also available to Australian sophisticated investors.
