Blackbeard Capital: Fund Update-0
A look inside the portfolio and its performance
As our fund has grown in terms of both Assets Under Management and Performance Returns, we felt it was necessary for us to release an update on the current allocations and performance metrics. We are very proud to announce that as of writing, the portfolio has returned 89.86% of every $1 invested in the fund, and AUM has grown by over 55% in the last month alone!
The current performance of 4 Blackbeard holdings:
> $ETH holdings up 30.59%
> $BTC holdings up 26.20%
> $LINK holdings up 260.79%
> $REN holdings up 99.41%
**The fund utilized the sBTC Curve.fi liquidity pool to receive both BPT & CRV rewards, which at current market prices equate to ~100% return on BTC used.
Technical Ratios:
- Beta- financial measurement of systematic risk associated with a portfolio.
- Sharpe Ratio- widely used method for calculating the risk-adjusted return.
- Sortino Ratio- similar to Sharpe, but differentiates harmful volatility from total overall volatility using downside deviation.
**Because there is a lacking metric similar to the S&P500 in crypto, we decided to use three separate betas (BTC=1, ETH=1 & 50/50ETHBTC=1) for analysis purposes. We looked at using sDEFI but the synthetic has only a few months of price data.
The chart above is showing that compared to other major DeFi tokens our fund has been running at a much lower beta, which is expected for a diversified portfolio. What’s interesting is that when using a beta of 50/50BTCETH=1, the Blackbeard fund has a beta less than 1 meaning it is systematically less risky than a portfolio with that distribution.
The Sharpe and Sortino ratios are used to measure how well a fund is maximizing returns when adjusted for risk. The main difference is that the Sortino ratio utilizes downside deviation which treats large upward swings in price as neutral since positive volatility is a benefit. The Sharpe ratio considers both upside & downside price movements as negative. Usually, any Sharpe or Sortino ratio greater than 1.0 is considered acceptable for investors, with a ratio of 3.0 or higher considered excellent and a ratio under 1.0 being sub-optimal.
The Blackbeard Fund was incepted back in January with a small investment made by the founders and has subsequently grown into one of the top 20 largest funds listed on the Melon Protocol. Check out our previous article to see how you can get involved and if you have any questions, concerns or are interested in learning more about Blackbeard feel free to reach out to us on our telegram channel here.
Regards,
Blackbeard Capital Management Team
