First Funds on Blackmoon Crypto Platform
Blackmoon Crypto Platform will be the home for a wide variety of tokenized investment vehicles targeting the full spectrum of investment opportunities in traditional and crypto universes. To break ground, leverage the team’s existing expertise, and set an example for external asset managers, Blackmoon will establish and run a number of funds itself. This is your sneak peek into these funds’ investment strategies.
High-income fiat fund
Blackmoon Crypto is the part of Blackmoon Financial Group, the financial technology and asset management company with a performance track record since August 2014 with more than USD 100 million worth of loans transacted. To leverage this expertise and pedigree the first fund will be oriented on the alternative debt in the fiat world. Below is the unaudited performance report of the portfolio under Blackmoon’s management since inception of its operations.
A fixed income opportunity such as this used to be inaccessible for wider investment public before. Historical annualized return to the investor was 14.77% in euro net of all fees. Now, via Blackmoon Crypto Platform, investors can get allocation to such investment strategies.
The first fund will provide funding to the alternative lenders doing business in Europe. Such funding is structured as collateralized debt facilities and acquisition of the loans’ portfolios to provide token-holders with additional security on top of thorough onboarding and ongoing due diligence processes conducted by in-house investment and data science teams.
We expect that the first closing for this fund would be at USD 20 million with additional closings based on the investors’ sentiment.
Low-risk fixed income
The next fund Blackmoon is going to establish on the Blackmoon Crypto Platform will also rest on the extensive team experience in alternative lending. Due to extreme volatility of the major cryptocurrencies, investors are looking for so-called safe havens in the crypto world in order to preserve investment value and perform transactions with the assets nominated in fiat currencies. Currently such safe havens are predominantly represented by the tokens pegged to US dollar and Euro.
While these tokens are not volatile against pegged currencies they hardly preserve value if we factor in transaction costs, since these assets yield no return to the holders. To address this issue Blackmoon will set up a low-risk fixed income fund in US dollar (or euro depending on the investors’ sentiment).
This fund is expected to yield 5% net to the investors who are willing to store value in low-volatile US-dollar nominated asset that yields return to the holder. Such a return makes a great difference for the investors and will likely attract interest of the investors that currently hold pegged crypto tokens.
We expect that the first closing for this fund would be at USD 20 million with additional closings based on the investors’ sentiment.
Cryptocurrency fund
The third fund set up on the Blackmoon Crypto Platform will be oriented toward ICO and cryptocurrency investments to serve the needs of those investors who want to have exposure to the broader crypto-currency market.
This fund will leverage Blackmoon in-house data science expertise and will be the place where blockchain meets deep-learning algorithms, portfolio theory and programmatic order execution.
The portfolio will follow three investment strategies that will be rebalanced subject to the relative performance.
The first part of the portfolio will exploit market inefficiencies by actively trading in cryptocurrencies’ pairs by predicting their intraday movements.
The second one will be long-only strategy that applies mean-variance portfolio optimization in order to provide token holders with the best possible risk-return profile.
The last one will focus on the most promising ICO investments, based on the thorough technical and business due diligence, including onsite meeting with the founding teams.
We expect that such a combination of strategies will return a sustainable 35% return adjusted for risk in the long run. The first closing is expected at USD 10 million with additional closings based on the investors’ sentiment.
These three funds managed by Blackmoon internally will serve as a proof of concept for external asset managers and provide investors with legally compliant investment vehicles with compelling risk-return profiles. We expect that the number of funds on the Blackmoon Crypto Platform will exceed 16 with the total value above $1.8 billion by 2022.
Handy links:
- website: blackmooncrypto.com,
- whitepaper: blackmooncrypto.com/bmc_whitepaper,
- teaser: https://goo.gl/iGWQ5N
- telegram chat: https://t.me/blackmooncrypto,
- parent company website: blackmoonfg.com.
Blackmoon Crypto token sale starts on September 12 and it’s poised to sell out pretty fast. We are also gathering pre-orders at account.blackmooncrypto.com.
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