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Overview
XBTO Trend is a systematic strategy aiming to profit from both upward and downward movements in the liquid cryptocurrency markets (top 50 and beyond).
This is achieved by taking long (buy) or short (sell) positions based on observed directional trends within these markets.
These trends are identified through comprehensive analysis of historical market prices across multiple timeframes.
Key highlights
Designed for institutional investors, the XBTO Trend Fund offers a disciplined, algorithm-driven approach to navigate and profit from the complexities of the cryptocurrency market.
Superior risk adjusted returns
XBTO Trend, as a long/short strategy, delivers superior risk-adjusted returns, providing clear benefits to strategic long-only asset allocations.
Maximized trading efficiency
The fund focuses on the top 50 highly liquid instruments to maximize execution and reduce potential liquidity risks.
Strong diversification
The fund employs a multi-horizon strategy, integrating short, medium, and long-term trends to construct a robust portfolio that diversifies across market cycles, thereby reducing volatility and enhancing stability.
Institutional grade infrastructure
XBTO Trend is an investment fund registered with the Bermuda Monetary Authority (BMA) and managed by XBTO International Ltd.* Diamond Hands leverages the resources of the entire XBTO Group, including technology, quantitative research, finance, legal and compliance.
* XBTO International Ltd is a licensed digital asset business regulated by the Bermuda Monetary Authority (BMA) and is being registered as a Class B person under the Investment Business Act 2003 (as amended) (IBA).
Performance (net of fees)
XBTO Trend deploys a diversified set of systematic strategies and aims to generate attractive and consistent risk-adjusted returns. XBTO Trend went live in Feb 2024 and all other returns are backtested returns.
Net performance (backtest and live data)*
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*All performance numbers from Jan 2020 to Nov 2023 are backtested returns.Trend was trading live since Dec 23 and was formally incepted in Feb 2024, where returns are net of fees. There is no guarantee that the market conditions during the past period will be present in the future.
**Performance year to date includes simulated returns (Jan‘24) and net live performance (Feb’24 onwards). YTD (net of fees) live performance is 14.06%.
NAV (Composite backtest + live)
Performance metrics (since Jan 20)
Realized performance
Sources: S&P500, Company Data.
XBTO Trend – under the hood
The XBTO Trend strategy is characterized by a fully systematic methodology that operates continuously around the clock, 24/7. This approach has demonstrated profitability in both long and short positions across a broad spectrum of cryptocurrencies during backtesting and live performance.
Key features
- Dynamic universe
Trades a dynamic selection of 180 cryptocurrencies in the perpetual futures markets.
- Average holding time
- Market correlation
- Trend Signals
- Risk diversification
- Downside risk management
Capturing positive performance during market downturns
XBTO Trend effectively leverages sustained market movements to secure positive returns, even during downturns, thereby offering investors a dependable hedge against tail risks and bolstering performance across volatile market conditions.
XBTO Trend net positions effectively align with Bitcoin's 30-day momentum*, capturing market outperformance.
Positive momentum and long positions: When Bitcoin was trending up and positions were predominantly long, thus benefiting from rising prices.
Negative momentum and short positions: When Bitcoin was trending down and positions were predominantly short, XBTO Trend profited from declining prices.
*"30-day momentum" measures the strength of an asset’s price trend over the past 30 days by comparing the current price to the price 30 days ago. Positive momentum indicates an upward trend, while negative momentum suggests a downward trend.
XBTO Trend applied to a broader portfolio
Adding a small allocation of XBTO Trend to 60/40 portfolio represents an opportunity to both improve returns and reduce risk of the combined portfolio.
Sources: Company Data, S&P. Hypothetical simulated performance results have certain inherent limitations. There is no guarantee that the market conditions during the past period will be present in the future.
Risk management
XBTO Trend implements a robust multi-layer risk management framework.
Proprietary risk systems
The Fund deploys its own proprietary risk systems for real-time monitoring of key risk metrics.
Proprietary risk dashboard: PNL, exposure, VaR, drawdowns, volume, slippage, collateral breakdowns, commissions and margin usage. Slippage monitoring and daily reconciliations.
Automated alerts: Performance, exposure changes, new trades, VaR levels.
PM monitoring qualitative and quantitate predefined rules/limits
Adhering to well defined portfolio management guidelines and exposure limits:
Independent risk oversight: Factor analysis, stress testing and VaR measurement, PM potential intervention (rarely) for risk reduction.
Risk reporting: Comprehensive analytics providing insights such as potential drawdowns at a specific confidence levels and position limits.
Governance framework - XBTO Risk Committee
Provides independent management and oversight of the investment management activities.
Defining governance, control and supervision framework:
Portfolio reviews: periodic reviews of allocations, risks, research priorities etc.
Formal policies: collateral management and risk limits approved by board of directors.
Regulation: Regulatory reporting, XBTO International Ltd is a licensed digital asset business regulated by the BMA.
XBTO overview
- From 2015 through 2022, XBTO operated exclusively as a proprietary crypto trading and investment firm.
- Over the years we became a leading infrastructure participant contributing over 2% of global crypto derivatives volume and investing in some of today’s major players.
- In late 2022, the failings of the industry convinced us to transition into a digital assets investment platform to help institutional players ‘safely’ access digital assets.
- In 2023, we have completed the acquisition of Stablehouse to round out the core infrastructure and capabilities required to serve the needs of institutional clients and HNW individuals.
- We are licensed by the Bermuda Monetary Authority and have a presence in 5 locations: Bermuda, Miami, New York, London, Paris and Abu Dhabi next.
Our key partners
Leadership
XBTO is led by financial industry veterans with an extensive background across firms such as SAC Capital, Goldman Sachs, and State Street.
- Phil Bekhazi
CEO, Founder
Prior experience:
SAC Capital Advisors, Citibank, Calypso Technology
>10 years in digital assets, >20 years in financial services - Javier Rodriguez
CCO
Prior experience:
Goldman Sachs, Barclays Global
>25 years in Investment management - Michael Chauliac
COO
Prior experience:
Goldman Sachs, Barclays Global
>25 years in Investment management - Richad Idris
Co-Founder, CTO
Prior experience:
Société Générale, Exane, Natixis
>10 years in digital assets, >20 years in financial services - Mark Brazier
CFO
Prior experience:
PricewaterhouseCoopers, GFI Group, LiquidX
>20 years in financial services - Nicolas Genechesi
Head, Portfolio Management
Prior experience:
Forum Asset Management, Bainbridge Partners, Timber Hill, Prince St Capital
>7 years in digital assets, >20 years in financial services - Walton Comer
Senior Advisor
Prior experience:
Falcon Bridge Partners, SAC Capital Advisors, Thornhill partners, Lucid
>10 years in digital assets, >20 years in financial services - Mimo Ousseimi
Senior Advisor
Prior experience:
Bank of America (Merrill Lynch), Goldman Sachs, State Street Research and Management Company
>30 years in financial services
Key terms
Name of fund
XBTO Crypto Opportunities Fund SAC Ltd.
Cell name
XCOF Diamond Hands Trend
Investment currency
USD -or USDC / USDT
Minimum investment
USD $100,000
Subscriptions
Monthly
Liquidity
Monthly, 45-day notice
Management fee
2%
Performance fee
20%
Investment manager
XBTO International Ltd
Eligible investors
Accredited investors
Fund registration
Bermuda Monetary Authority Professional Class B
Auditor
RSM Cayman
Fund administrator
NAV Consulting
ISIN
BMG316631263
Achievements
XCOF Diamond Hands has been founded on a framework of robust risk management and strong governance.
- 2015XBTO was founded and became the first institutional market maker on several major exchanges.
- 2016XBTO opens Paris office.
- 2017XBTO expands into OTC trading, mining and venture capital.
- 2018XBTO expands into Bermuda.
XBTO joins Blockstream Liquid as a founding node. - 2019XBTO participates in the first block trade of US-regulated bitcoin futures.
XBTO obtains Bermuda digital assets license. - 2020XBTO participates in first micro bitcoin futures trade on CME.
XBTO expands into Miami.
XBTO makes a strategic investment in the seed round for Stablehouse, alongside Dragonfly Capital, Liberty City Ventures and Coinbase Ventures. - 2021Stablehouse secures partnership with the world’s 5th largest fund administrator, Apex for custody & trading white-label platform.
XBTO becomes the main corporate and jersey sponsor for Inter Miami's Major League soccer team co-owned by David Beckham and Jorge Mas. - 2022XBTO’s streaming markets volume grows by 2x.
Proprietary quantitative strategies returned 12.3% in 2022 through the bear market. - 2023XBTO acquires institutional custody and trading platform Stablehouse.
Daily volume hit $300,000,000 per day across company verticals.
XBTO appoints former Goldman MD Javier Rodriguez as Chief Commercial Officer.
Disclaimer
This Presentation (the “Presentation”) is intended solely for the use of prospective investors in determining whether or not to pursue any opportunities with XBTO Crypto Opportunities Fund SAC Ltd., XBTO Global Ltd, XBTO International Ltd. Stablehouse Ltd or any of its group or related companies (together, the “Company”).
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