NapoleonX Newsletter — October 09, 2020.
Dear Napoleonians,
Last month was a tricky month with a big dump on BTC and ETH very early in the month and then a very slow and choppy recovery. ETH was down 17% over the month and BTC down 7,5%.
There was no particular news during the month except early October when the CFTC charged Bitmex on several fronts. Hopefully, it will end in a similar way as the Bitfinex news a few months ago.
At the time, markets dumped and then forgot as regulators attack on the Exchange were not as strong as initially thought. Bitmex had already started taking some measures a few weeks ago by announcing mandatory KYC on its platform. Given Bitmex war chest, there is no doubt they will hire good lawyers and will revisit their operational process to avoid being accused of any wrongdoing.
Strategies updates:
Our AR strategies were able to catch this early short, so I hope you made some decent money by following our trading signals at the time. However, the second part of the month was more difficult with our flagship ETH.BTC.USD AR finishing down 0,70% over the month. It was much better that the BTC and ETH performance though.
We have not had times to update our strategies with the filter we talked in the previous Newsletter but it should be done this coming month. These filters have been designed for range markets, not the kind we had in September.
Sales activity:
The DAF#1 restructuring is on its way despite delayed for technical reasons. We are pushing on it and still confident to be fully effective soon.At this stage, AUM are around 600k€.
About the DAF#2, our partner is still building book to collect firm interests and it seems promising so far. We will of course communicate as soon as we can on raised AUMs and launch date.
Last, we are delighted to announce the launch of DAF#3 embedding a strategy combining the ETH-BTC-USDT LO and ETH-BTC-USDT AR algos since September 30th 2020.
It is a dedicated vehicle launched for a unique institutional investor with 1.1M USDT of AUM. At this stage, the vehicle will not be publicly disclosed, and we will communicate in transparency via the Newsletter channel on AUM evolution and provisioned performance fees
Governance change:
For commercial and strategic purposes, we have unanimously decided to evolve the governance of Napoleon AM and consequently Napoleon Crypto, Jean-Charles and Stéphane switching their respective roles from Managing Director to President. This switch aims to accelerate the sales activity at Napoleon AM and serves thus the strategic interest of the companies.
Conclusion:
As you can see we are keeping going forward on our sales activity. We will keep pushing with external distributors as this is a quicker way to launch and market DAFs for us.
On the market side, we believe the strength in BTC or ETH post the Bitmex news is very reassuring for the coming months. We still believe in a price acceleration before the end of the year and a very positive 2021 year as well.
Sincerely yours,
Jean Charles, Stéphane & Arnaud
