Crypto currencies and derivative markets are liquid but still inefficient. These new and fast changing markets, which are volatile, offer arbitrage opportunities.
Libris Strategy picks managers focusing on Crypto Arbitrage and Market Neutral strategies. The goal of the strategy is absolute double digit returns with very low drawdowns thanks to diversification of Market Neutral strategies exploiting the current opportunity set of an inefficient but liquid market. It benefits from access to open funds at lower minimums, to closed funds and best-in-class structure.
Arbitrage/ Market neutral/ Event driven managers only
to limit drawdowns and achieve uncorrelated returns independent of market direction
Diversification with best in class 5 to 8 managers
i.e. limited downside risk through diversification
Access to closed managers
and lower minimum investment
Headline risk is reduced
thanks i.e. no direct hacking risk for instance
Dual best in class Structure
PORTFOLIO CONSTRUCTION PROCESS
The investment team follows a comprehensive process to select the underlying managers for Libris Strategy:
Strategic Asset Allocation
Selection of the main investment themes for the Libris fund with specific focus on absolute returns.
Example – in 2018-2019 focus on crypto theme, such as crypto arbitrage and special situations, uncorrelated to crypto and traditional market volatility.
Screening of underlying investment themes
Active research of the underlying strategies and managers is conducted using the existing knowlegde and network base of the investment team, databases and investment conferences.
Libris fund due diligence is based on 10 must-haves for every investment.
Only strategies that align to all ten criteria are implemented.
Portfolio Allocation and monitoring by the investment team of Libris fund who rebalances the portfolio as necessary.
Our 10 ‘musts’ for the underlying managers
- Absolute return strategies
- Performance profile
- Viable fund structure
- Recognised service providers
- Independent administrator and auditor
- Exposire limits
- Sizing with volatility and correlation
- Liquidity match
- Top tier technology
- Disaster and business continuity plan