Issuer: ELEMENT ONE LTD
ISIN Number: VGG299771086
Issue Description: USD CL B SHS
ISO CFI: CICXXX
The S&P 500 wide market index for January 2019 went through an upward correction after a significant decline at the end of 2018, adding about 7.8% over the month. At the end of 2018, we expected a decline in the value of the indices, in connection with this, the portfolio was rebalanced with a predominance of short positions, which gave a positive result in profitability. In January 2019, the market correction brought insignificant negative results to the NAV fund indicators, however, despite the January growth, we are skeptical about the medium term. The use of options positions for the EUR / USD pair with insignificant monthly volatility allowed us to smooth out the effects of the January correction as a result.
Slight adjustments are in the process in the fund’s portfolio structure, including the addition of a new medium-term position to the portfolio in the form of Autodesk (NASDAQ: ADSK). Detailed information on this investment idea is published on our website.
Additionally, we began to gain a position on Nvidia (NASDAQ: NVDA) in the medium-long term. Nvidia is the leader in the delivery of computers for cars with autopilot. It's computing systems are already used in prototypes of unmanned vehicles of Toyota, Mercedes-Benz, and BMW. In addition, the company is also testing its own unmanned vehicle. We believe that paper won back speculative demand on the wave of cryptocurrency hype, and from current levels, given the potential for the development of unmanned vehicles that use solutions based on the company's products for the most part has significant growth potential (for example, Tesla electric vehicles now exploited are equipped with computing systems based on Nvidia graphics chips).
Issuer: RAM Data Technologies INVT LTD
CUSIP Number: G7369L 106
ISIN Number: VGG7369L1067
Issue Description: EUR CL C SHS
ISO CFI: CICJMS
The cryptocurrency market continues to be in a bearish trend - the cost of digital money has been declining for over the past 416 days. BTC exchange rate began to fall in December 2017 after it hit the historical maximum of about $ 20,000. Since then the price has been dropped by 83%.
However, a similar drop was also observed in 2013-2015, and the situation repeats 1-in-1. At the beginning of December 2013, BTC was trading at $ 1,146 which dropped by 84% to $ 184 by January 14, 2015. The bearish trend in the market lasted 410 days after which it inclined again.
The Mining.vg fund in its profitability is primarily tied to the cost of cryptocurrency and the complexity of their mining. The bear market has a negative impact on performance, and the increased complexity in the network of the air by 20% in January 2019. It also reduced the monthly production by about 15% in cryptocurrency terms. Despite the negative trends, the profitability of mining even at current prices is at the level of 15-30%. The value of the share shows a medium-term decline due to the need to depreciate the value of the equipment's GPU.
Nevertheless, a significant number of analysts are looking positively at the future of the market, noting that the situation was much worse last time when the very functionality of the blockchain was in question. Now the fundamentals are much stronger, and the price of cryptocurrency will start to grow again when institutional investors come into the industry.
The fund itself is also actively working to optimize mining processes and reduce the cost of variable costs. In mid-January, we started working with the new Cuckaroo29 algorithm and the Grin “coin”. A wave of interest in this coin increased the income on the 1080TI card to $ 0.9 per day against $ 0.65 when the ethash algorithm was used.