Class T Shares: How to gain exposure to a managed Crypto Asset Fund

Would you like to gain exposure to an actively managed crypto asset fund with a solid management team?

By purchasing Class T shares through Crypto Asset Fund (CAF), a fund managed by Crypto Asset Management (CAM), you can gain exposure to an active management strategy that blends long/short, fundamental and algorithmic trading strategies, along with strategies involving lending and initial coin offerings (ICOs).

The fund’s overall strategy is complex, so let’s break it down in terms of its different sub strategies:

Primary Strategy:

The fund’s primary strategy, which is used for roughly 50 percent of the assets that CAF holds for Class T, involves long/short trading of “blue chip” digital currencies, along with fundamental and algorithmic (algo) trading overlays (secondary strategies “overlaid” on top of the primary ones).

Secondary Strategy:

The secondary strategy, which is used for roughly 30 percent of Class T’s assets under management (AUM), involves long/short algo trading and a fundamental overlay. CAF uses a research strategy which involves small-to-mid-cap digital currencies and ICOs for its tertiary strategy, which is harnessed for approximately 10 percent of CAF’s AUM. Investors should keep in mind that CAF will not use the assets gathered for Class T shares to trade “penny” digital currencies – meaning altcoins worth less than $2 million – or “dead” currencies, defined as those that have very little trading volume.

Trading Layers:

The fund has three trading layers, which are basically the lengths for which CAF holds a position:

Core hold:

Core hold is a longer-term, unleveraged position. Usually, the fund uses this approach, which is mainly for blue chips and large caps, for its Class T shares.

Core leverage:

Core leverage means taking out longer-term leverage, generally for a long position. The fund uses this approach less frequently. Enneking notes that “it often doesn’t exist at all.”

Trading leverage:

Trading leverage, the third layer, represents positions that CAF enters – and exits – much more quickly. One example of how this could be used is the following scenario: The core hold and core leverage are long positions, but trading leverage is short.

If you are interested in gaining exposure to an actively managed crypto asset fund that leverages a sophisticated investment strategy, CAF’s Class T shares may be a great fit.

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