2022 MASTER FUND DECK
OVERVIEW
WORLD CLASS TEAM
75 years’ experience in Global tier one financial institutions
STRATEGY
Systematic and Automated mkt neutral strategies
REGULATED
Fully regulated by the FSC in the UK
PERFORMANCE TARGET 20%+ net of fees with a 2.5 Sharpe ratio
LOCATION
Based out of London, on the ground in London, Hong Kong and Paris
SHARE CLASS
USD, BTC and ETH share classes
WORLD CLASS TEAM
Built to extract high value opportunities from inefficient crypto markets
JAMES WESTWOOD
THOMAS RESTOUT
GOLDMAN SACHS: 11 years in London and Hong Kong. Managing Director in macro sales
PETE WILLIAMS
GOLDMAN SACHS: 4 years running FX electronic trading
GOLDMAN SACHS: 7 years in FX and Interest Rate trading
MORGAN STANLEY: 7 years Managing Director and Head of Electronic Trading
PARTNER
DAVE ASKEY PARTNER
GOLDMAN SACHS: 7 years in FX and EM electronic trading POST–QUANTUM: CTO - Cyber security and cryptography company TRAMONEX: CTO – Fintech company
ASCENT ROBOTICS: CIO - AI company building software layers for automation
NON-EXECUTIVE
NON-EXECUTIVE
POINT72: Macro portfolio manager BALYASNY ASSET MANAGEMENT: Macro portfolio manager
RICHARD GRIFFITHS
HEAD OF QUANT RESEARCH
PAUL SCRUBY CTO
TUDOR CAPITAL: 6 years as Senior Quantitative developer 20 years’ experience as a specialist in market optimisation, execution tech and Quant simulation
MORGAN STANLEY: 10 years in London and New York. Managing Director and head of Macro Strats. JP MORGAN: 5 years FX derivatives quant research UBS: 6 years FX derivatives quant Team
ADRIEN HUSSON QUANT DEV
SOCGEN: Quant Developer 1yr trading deploying systematic strategies in Defi markets
STRATEGY & PERFORMANCE
Master Fund Portfolio 25.00%
BUILDING THE BEST RISK ADJUSTED RETURN CRYPTO PLATFORM
20.00%
We operate a series of relative value strategies including basis trading (futures vs underlying), cross exchange arbitrage, and derivative relative value. Our strategies are constantly updated and refined over time based on our search for low risk, high reward opportunities. The strategies are market neutral, historically performing best during periods of high volatility which creates more market dislocation.
Return
15.00%
20.00%
5.00%
0.00%
-5.00%
01/11/2020
01/01/2021
01/03/2021
01/05/2021
01/07/2021
01/09/2021
Date
Portfolio
Oct 20
Nov 20
Dec 20
Jan 21
Feb 21
Mar 21
Apr 21
May 21
Jun 21
Jul 21
Aug 21
Sep 21
Ann. Returns
1.67%
1.75%
2.25%
3.66%
3.04%
1.23%
1.94%
4.51%
1.20%
-0.14%
0.35%
0.64%
23.74%
Performance data for Portfolio since October 2020. Past performance is not a reliable indicator of future results. The value of investments can fall. Investors may not get back the amount invested. Income from instruments may vary and is not guaranteed. For a full list of risks applicable to this fund, please refer to the prospectus.
Sharpe Ratio Peak to Trough Drawdown
2.37 2.92%
THE FUTURE – NEW GENERATION OF TECHNOLOGY Internet vs. Cryto Adoption Internet User Timeline 1990
1991
1992
1993
1994
1995
1996
TOTAL USERS (M) 1997
1998
1999
2000 10000
We believe that we are at the very start of a financial revolution and that crypto markets are still very much in their infancy.
10000
Human nature works in a linear fashion. Exponential ideas are difficult for us to comprehend.
100
Current estimates on the number of crypto users is around 300 million, or just 3.7% of the worldwide population.
10
GREAT CHANGE WILL BRING GREAT OPPORTUNITY.
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Crypto User Timeline Source: World Bank, Cryto.com
Total Crypto Users (M)
Total Internet Users (M)
1
FUND DETAILS
AWR CAPITAL LIMITED: BVI BASED FUND REGULATED BY THE FSC
SUBSCRIPTIONS AND REDEMPTIONS MONTHLY, WITH 1 MONTH NOTICE PERIOD
USD, BTC AND ETH DENOMINATED SHARE CLASSES AVAILABLE
MANAGEMENT FEE
2%
PERFORMANCE FEE
20%
APPENDIX
OUR PARTNERS – FOCUS ON SECURITY & RISK BANKING & CUSTODY
LEGAL AUDIT & ACCOUNTING
TRADING VENUES
PRIME BROKERAGE & FUND ADMINISTRATION
RISK MANAGEMENT PRIORITY We operate with a strict focus on operational risks. When managing crypto-currency we actively manage a number of risks that are crypto specific, in addition to those typically seen in traditional finance. Through automation we are able to operate in a large number of markets and assets, not only enabling higher returns, but also facilitating superior market and operational risk management.
MANAGEMENT AND CUSTODY OF FUNDS
The nature of cryptocurrencies means that we must be concerned with both their custody and the operational risks of moving funds between wallet addresses. We manage both of these risks with Copper, an institutional grade crypto-specific custodian, who use MPC encryption technologies to provide secure custody of our assets off-exchange. This also provides a platform for moving funds between custody and exchanges securely, via strictly managed and whitelisted deposit addresses and controls requiring multi-manager approval in order to move assets.
MARGIN MANAGEMENT
When trading across exchanges in volatile markets we need the ability to rebalance margin on our accounts instantaneously, without having to wait for either traditional banking transactions or blockchain transactions. We do this using Copper’s ClearLoop platform, where on supported exchanges we can hold funds in custody while allocating them to be used as collateral by the exchange. We can then instantly move this collateral allocation via API should we wish to rebalance across exchanges, allowing us to re-margin instantaneously, without the funds leaving our custodian.
CREDIT RISK/ EXCHANGE RISK
In addition to making use of a crypto specific custodian where possible, we seek to mitigate our exposure to exchanges through significant due diligence. We concern ourselves with the exchanges general management and reputation, but also thoroughly review it’s security practices and management of funds. We typically have an active relationship with the senior management of the exchanges or platforms we use for trade execution.
DISCLAIMER The Material is for distribution to Professional clients and should not be relied by any other persons. All financial investments involve an element of risk, Therefore, the value of your investment and the income from it will vary and your initial investment amount cannot be guaranteed. The information contained herein does not constitute an offer to sell or the solicitation of any offer to purchase interests in Falcon strategy. This factsheet is for informational purposes only. Certain information contained in this factsheet constitutes forward-looking statements, which can be identified by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,” “target,” “project,” “estimate,” “intend,” “continue,” or “believe,” or the negatives thereof or other variations thereon or comparable terminology. Such statements are not guarantees of future performance or activities of the Fund. Due to various risks and uncertainties, the actual performance of the Fund portfolio may differ materially from those contemplated in such forward looking statements. The proposed investment program for the Fund involves risk, and no assurance can be given that the investment objectives stated herein will be achieved. You must read the Fund offering and governing documents prior to investing in the Fund in order to completely understand the Fund’s investment program and risk profile. Past performance is not indicative of future results. An investment in the Fund is speculative and involves a high degree of risk and an investor could lose all or a substantial amount of the investment. The Fund may be leveraged and performance may be volatile. Performance information shown in this fact sheet has not been audited and is subject to change. Private & Confidential.