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Award Nominations
Nominated in 2023 by HedgeWeek for two prestigious awards
Digital Assets Fund of the Year
Relative Performance of the Year – Digital Assets Fund
Performance Overview
Net Performance Since Inception
| Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | YTD | Total |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | --- | --- | 2.16% | 1.39% | 0.98% | 0.04% | 0.49% | 0.82% | 0.37% | 1.07% | 0.70% | 0.76% | 9.12% | 9.12% |
| 2023 | 1.50% | 3.73% | 4.11% | 0.87% | 0.56% | 0.36% | 0.40% | 0.44% | 0.56% | 0.56% | 0.90% | 1.53% | 15.83% | 26.39% |
| 2024 | 1.31% | 1.12% | 1.33% | 0.98% | 0.73% | 0.67% | --- | --- | --- | --- | --- | --- | --- | --- |
Performance Metrics
| Cipher Chain, LP | Bitcoin (USD) | HFRI Crypto Index | S&P 500 TR | |
|---|---|---|---|---|
| Sharpe, Annualized (RFR) | 2.74 | 0.50 | 0.23 | 0.44 |
| Annualized Alpha | --- | 13.10% | 13.41% | 13.39% |
| Correlation | --- | 0.27 | 0.20 | 0.10 |
| Beta | --- | 0.01 | 0.01 | 0.02 |
Our Investment Philosophy
Predictable Returns
While markets may fluctuate, our commitment to delivering predicable returns remains unwavering. We employ a disciplined investment approach, grounded in thorough research and risk management, to identify opportunities that offer consistent and predictable returns over time.
Transparency
Transparency is the cornerstone of trust. We believe in open communication, providing our investors with clear and comprehensive insights into our investment strategies, processes, and performance. By fostering transparency, we aim to build lasting partnerships founded on mutual respect and accountability.
Adaptation
Adaptation is essential for survival and growth. We embrace change as a catalyst for innovation, constantly reassessing our investment strategies and approaches in response to shifting market conditions and emerging risks. Through agility and foresight, we position ourselves to capitalize on evolving trends and navigate challenges with confidence.
Capital Preservation
Preserving and protecting our investors' capital is paramount. We prioritize investments with a focus on capital preservation, diligently managing risk and downside protection strategies to safeguard against adverse market conditions. Our goal is to provide peace of mind regardless of market volatility.
Continuous Learning
We believe that knowledge is the foundation of success. Our firm is dedicated to continuous learning, investing in the development of our team's skills and expertise to ensure that we remain at the forefront of industry trends and best practices.
Our Investment Strategy
Cipher Chain utilizes non-directional positions using decentralized finance applications in an effort to produce low volatility returns that are almost completely uncorrelated to equity and crypto markets.
The principal is converted to stablecoins (digital assets pegged to the US dollar) which are used to execute market-making and delta-neutral strategies. Positions are diversified and rebalanced using a proprietary methodology to optimize returns on a daily basis within set risk parameters.
Highly Experienced Team
Fund Managers have been actively engaged in Decentralized Finance since its inception and have a comprehensive understanding of the ecosystem's benefits and risks
Innovative Investment Strategy
The Fund has developed a proprietary methodology allowing the generation of exceptional risk-adjusted returns in decentralized finance via nondirectional strategies
Superior Risk Management
The firm employs a comprehensive risk-reward framework that meticulously analyzes every smart contract and associated collateral. This analysis results in a weighted risk-reward scoring system, driving our approach to sizing and diversifying positions.
Zero Negative Monthly Returns
Since its inception on March 1, 2022, the Fund has never experienced a single down month and has delivered annualized net returns of 13.59%.