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Overview
XCOF Original is a multi-strategy investment mandate that allocates dynamically to directional and market neutral strategies.
Its diversified set of systematic strategies aims to generate attractive and consistent risk-adjusted returns.
Investment highlights
The XBTO Crypto Opportunities Fund Original (“XCOF Original”) is a multi strategy investment opportunity that deploys a set of proven algorithmic trading strategies.
Differentiated returns
A multi-strategy investment mandate focusing on diversified directional and market neutral strategies, offering a distinctive asymmetric and uncorrelated return profile.
Battle tested risk management
Drawing on more than 9 years of mastery in digital asset trading and risk management, we leverage our foundation in traditional finance to expertly navigate the ever-evolving crypto landscape.
Institutional grade infrastructure
XCOF Original 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.
Generational market opportunity
The nascent digital asset markets present an alpha capture opportunity, similar to the 80s/90s for CTAs and statistical arbitrage strategies.
Performance (net of fees)
XCOF Original deploys a diversified set of systematic strategies and aims to generate attractive and consistent risk-adjusted returns.
Net performance since inception
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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.
XCOF original strategies
The fund dynamically allocates to a growing set of differentiated strategies.
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Investment process
XCOF Original’s investment process aims to create a robust portfolio that capitalize on market inefficiencies, delivering consistent alpha and attractive risk adjusted returns.
- Idea generation
New signal ideas generated from trading experience, market observation, white papers, conversations with traders and other quants etc.
- Statistical analysis
New signal is back tested by quant team which conducts rigorous statistical analysis to validate its predictive power.
- Strategy design
Signal is parameterized and packaged with other signals into a strategy, while trying avoid overfitting historical data.
- Strategy evaluation
New strategy is evaluated based on its statistics (sharpe,volatility, correlation etc.) and value addition to the existing portfolio.
- Portfolio inclusion
Strategy is added to the portfolio based on its characteristics and level of adequacy with perceived market conditions.
- Risk management
Continuous evaluation of exchange risks (solvency), macro risks (interest rates, regulations, risk appetite), and strategy risks (correlations, volatilities, slippage).
- Dynamic allocation
Adjust allocations based on market assessment and continuous evaluation of strategies behaviours.
Risk management
XCOF Original implements a robust multi-layer risk management framework.
Predefined rules/limits
Predefined risk parameters are set at both portfolio and strategy levels, including:
Portfolio limits: max drawdown of 20% to cap maximum potential losses.
Strategy limits: well-defined Value at Risk (VaR) limits to control potential losses at a specific confidence level, position limits to manage exposure effectively.
Proprietary systems
XCOF Original deploys its own proprietary risk systems for real-time monitoring of key risk metrics.
Proprietary risk dashboard: PNL, exposure, VaR, drawdowns, volume, funding rates, volume, slippage, collateral breakdowns, commissions and margin usage.
Automated alerts: Performance, exposure changes, new trades, VaR levels.
Governance framework
Governance and control frameworks aligned with standards of traditional finance.
Portfolio reviews: periodic reviews of allocations, risks, research priorities etc.
Formal policies: Comprehensive collateral management and transfer policies approved by board of directors.
Regulation: XBTO International Ltd. regulated by the BMA (Bermuda Monetary Authority).
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
Investment currency
USD
Minimum investment
USD $100,000
Subscriptions
Monthly
Liquidity
Monthly, 45-day notice
Management fee
2%
Performance fee
20%
Investment manager
XBTO International
Eligible investors
Non-US accredited investors
Fund registration
Bermuda Monetary Authority Professional Class B
Auditor
RSM Cayman
Fund administrator
NAV Consulting
ISIN
BMG316631347
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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