The Hottest Hands in Hedge Funds

mudrick
Jason Mudrick (Michael Nagle/Bloomberg)

Stephen Taub

Distressed specialist Mudrick Capital and a slew of long-short funds lead the way in the first half.

Hedge funds are off to their strongest first-half performance in recent memory. But even among the superstars posting gains in the mid-20 percent range or higher, one stands out in particular.

Many of the top performers are long-short funds with roots to Julian Robertson, Jr.’s Tiger Management, sometimes called Tiger Cubs (because their founders worked for Robertson) or Tiger Seeds (because they got start-up capital from him). These equity-focused funds have surely gotten a boost from the strong performance of the Standard & Poor’s 500 stock index — which gained 18.5 percent through June including dividends reinvested — although many of these funds bested that performance even with significant short bets.

Tiger Cub Tiger Global Management, founded by Chase Coleman, notched a 29.7 percent gain for the first half of the year, while Tiger Global Long Opportunity, its long-only fund, rose 26.4 percent. Another Tiger Cub, Stephen Mandel Jr.’s Lone Pine Capital, posted 24 percent to 25 percent gains in both its long-short and long-only funds for the first half of the year, while Viking Global Equities, the long-short fund operated by O. Andreas Halvorsen’s Viking Global Investors, returned 17.2 percent for the period.

Elsewhere, Chris Hohn’s The Children’s Investment Fund, not a Tiger-related fund, is up 26.3 percent for the year, according to an investor.

But one of the best-performing funds this year isn’t equity focused. Jason Mudrick’s Mudrick Distressed Opportunity fund is up more than 29 percent for the first half of the year, according to two sources who have seen the results.

The fund — which invests in bankruptcies, restructurings, and struggling companies in general — gained 16.3 percent in 2018, 6.2 percent in 2017, and about 39 percent in 2016.

Mudrick declined to comment.

This year’s gains have been heavily driven by the firm’s investment in NJOY, a maker of electronic cigarettes. It had filed for bankruptcy in September 2016 for a variety of reasons, including new federal regulations from Food and Drug Administration.

In 2017 Mudrick become the majority owner after his firm provided a “majority” of a $35 million fundraising, enabling the company to emerge from bankruptcy later in the year, according to a press release at the time.

In February of this year, NJOY completed a funding round that valued the company at $1.2 billion, according to the Wall Street Journal. On May 1 the paper reported that NJOY was seeking to raise $300 million, which would value the company at as much as $5 billion.

It wound up raising just $130 million, for a valuation of $2 billion. Investors included Tiger Cub John Griffin, who had earlier closed his hedge fund firm Blue Ridge Capital, and Falcon Edge Capital, the hedge fund firm launched by Rick Gerson, a founding partner at Blue Ridge, according to the report.

Even so, at the time Mudrick’s NJOY investment was on its books at a lower valuation. According to The Journal, NJOY, which competes with Juul Labs — a hedge fund favorite — is gaining market share from a new vaping device.

Mudrick launched his firm in 2009 after spending most of his previous nine years on Wall Street at Contrarian Capital Management. It managed $2.4 billion earlier this year.

So far this year it has made six new investments, which is not high for the firm, according to an investor. Mudrick mostly invests in companies that have enterprise values of between $1 billion and $2 billion. The portfolio is focused on North America, including two companies in Canada. One is Toronto-based education publishing giant Nelson Education.

Institutional Investor earlier reported that Mudrick raised money for Mudrick Distressed Opportunity Drawdown Fund II and the related offshore vehicle, Mudrick Distressed Opportunity Drawdown Offshore Fund II. It is focusing on middle-market distressed credit. The fund is the second vintage of Mudrick Distressed Opportunity Drawdown Fund.

Last year, Mudrick raised $208 million for Mudrick Capital Acquisition Corp., a blank check company, also known as a special purpose acquisition company (SPAC). It has not yet done a deal. It has seven months left before the two-year expiration to complete a transaction. The SPAC would need approval from shareholders to extend that deadline.

source: Institutional Investor

Warren Buffett to MBA students: This is what ‘sets apart a big winner from the rest of the pack’

Warren Buffett
Philanthropist Warren Buffett is joined onstage by 24 other philanthropist and influential business people featured on the Forbes list of 100 Greatest Business Minds during the Forbes Media Centennial Celebration at Pier 60 on September 19, 2017Daniel Zuchnik | Contributor | Getty Images

Tom Popomaronis, Contributor

At 88, Warren Buffett has a lot of wisdom — and sharing them with students is one of the many wonderful things he’s known for.

One lesson the Berkshire Hathaway CEO loves to teach is the importance of developing good personal qualities at a young age.

Establishing good habits — even the little ones, like saying “please” and “thank you” — is a major key to success, he told Yahoo Finance’s editor-in-chief last year.

A high IQ won’t make you stand out

Buffett elaborated on the topic in a talk to MBA students from the University of Florida in 1998.

The legendary investor started his speech with a little game: “Think for a moment that I granted you a right — you can buy 10% of one of your classmate’s earnings for the rest of their lifetime.”

The decision should be based on merit, Buffett advised, so it’d be unwise to pick the person with the highest IQ, the richest parents or the most energy.

“There’s nothing wrong with getting the highest grades in the class, but that isn’t going to be the quality that sets apart a big winner from the rest of the pack,” said Buffett.

He continued: “You’d probably pick the person who has leadership qualities, who is able to get others to carry out their interests. That would be the person who is generous, honest and gave credit to other people for their own ideas.”

And here comes the hooker: In addition to this person, Buffett told the students they had to sell short another one of their classmates and pay 10% of what they do.

“You wouldn’t pick the person with the lowest IQ,” he said. “You’d think about the person who turned you off, the person who is egotistical, who is greedy, who cuts corners, who is slightly dishonest.”

If you see any of those qualities in yourself, you can get rid of them. “It’s simply a question of which you decide,” he said.

There’s nothing wrong with getting the highest grades in the class, but that isn’t going to be the quality that sets apart a big winner from the rest of the pack.

Warren Buffett
CEO, BERKSHIRE HATHAWAY

“If you write the good qualities down and make them habitual, you will be the one you want to buy 10% off when you’re all through, ” said Buffett. “The beauty of this is that you already own 100% of yourself, and you’re stuck with it. So you might as well be that person, that somebody else.”

Buffett said he sees people his age — or even 20 years younger — with “self-destructive behavior patterns,” and they’re entrapped by them.

Essentially, integrity — honesty, virtue, and morality — can make or break you in the professional world. And if you choose not to make it a priority, you risk getting stuck with a reputation for deceit.

What Buffett looks for in a good hire

All of this goes back to what Buffett himself looks for when deciding who to hire or invest in. His decision isn’t based on business metrics, test scores or degrees. Instead, it’s all about one’s personal qualities.

“There was a guy, Pete Kiewit in Omaha, who used to say he looked for three things in hiring people: Integrity, intelligence, and energy,” Buffett said. “If they didn’t have the first, the other two would kill them, because if they don’t have integrity, you want them dumb and lazy.”

It makes sense — if you can’t trust someone to act with integrity in a situation that demands it, then should they really be allowed anywhere near you or your brand?

The answers seem like a resounding “no,” but it also raises another, more difficult question: How do you know who to trust?

At Berkshire Hathaway’s annual meeting in 2007, an attendee asked Buffett that exact question.

The billionaire dipped into his store of wisdom and offered this sage perspective: “People give themselves away fairly often. When someone comes to me with a business, the very things they talk about, what they regard as important — there are a lot of clues that come as to subsequent behavior.”

Don’t be someone who turns people off

The big takeaway here is that if you want to be the person who is successful, who everyone wants to hire, you need to build habits of integrity.

There are a handful of ways for that:

  • Fulfill your promises
  • Be honest
  • Be trustworthy
  • Give credit where credit is due
  • Be mindful and emotionally intuitive
  • Manifest humility
  • Be willing to admit you’re wrong
  • Offer help when it’s needed
  • Treat others with respect
  • Be charitable
  • Be patient

Intelligence and ambition are valuable traits, but even so, a lack of integrity won’t make you stand apart from the others — nor will it get you hired, at least not by Buffett.

 

source:  CNBC.com

Virgin Galactic releases rocket from Boeing 747 airplane MID-FLIGHT

Virgin Galactic has successfully ‘launched’ a rocket from a Boeing 747 airplane in mid-flight, marking a huge step towards a new space launch technique.

The test flight took place in the Mojave desert yesterday and saw Virgin Orbit (a spin-off from the main Virgin Galactic brand) drop its LauncherOne vehicle from the modified airplane Cosmic Girl, while at an altitude of 35,000 feet.

Thankfully, the test flight went without a hitch, and the rocket and aircraft separated cleanly.

Virgin Orbit CEO Dan Hart, said: “Today’s test was a monumental step forward for us.

The rocket was released mid-flight (Image: Virgin Orbit/Cover Images)

 

“It’s the capstone to a thorough development program not just for a rocket, but for our carrier aircraft, our ground support equipment, and all of our flight procedures.”

The flight was piloted by Kelly Latimer and Todd Ericsson, who also fly for Virgin Galactic.

Mr. Latimer said: “The whole flight went incredibly well. The release was extremely smooth, and the rocket fell away nicely.

LauncherOne was released at an altitude of 35,000 feet (Image: Virgin Orbit/Cover Images)

 

“There was a small roll with the aircraft, just as we expected.

“Everything matched what we’d seen in the simulators well — in fact, the release dynamics and the aircraft handling qualities were both better than we expected.

“This was the best kind of test flight sortie from a test pilot’s perspective — an uneventful one.”

In the future, Virgin Orbit hopes to launch similar rockets into orbit from Cosmic Girl (Image: Virgin Orbit/Cover Images)

source:  Mirror

How To Legally And Securely Create Your Crypto Fund

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Trading, mining, holding… What are other ways you can profit in the cryptocurrency world? You can create your own crypto fund without having to directly deal with legal or security issues. Find how you can plan, create, and promote a crypto fund using the infrastructure of a management platform!

What Is A Crypto Fund

Stepping into the world of cryptocurrency requires us to have enough crypto assets with us. Those who have long been mining cryptocurrency are now having a lump-sum with them. However, for those who are new in this ecosystem, mining a substantial amount of cryptocurrency has become difficult due to the growing complexities of the mining algorithms. So how can newcomers build up their assets? This is where a crypto fund comes in! We’ve talked with experts from tokenbox.io in order to give you the details about the current crypto infrastructure, and the new products in this field.

A crypto fund is basically the managed capital of digital money that is available to the investors for replication. It serves as a bridge between a trader, who is creating the crypto fund, and the one who would happily invest into that fund. The ultimate goal of participating in a crypto fund is to gain crypto assets for both the parties.

Since cryptocurrency is trying to replace the fiat currency in the future, the crypto funds have evolved as the digital version of fiat currency. As this is a decentralized form of currency, it allows anyone to start a fund simply by introducing a new cryptocurrency. Consequently, several types of crypto funds have emerged with the purpose to satiate the appetite of investors and traders so that they can multiply their digital assets.

Top 3 courses for lawyers and decision makers

We’ve curated a list of the best courses for both lawyers and business executives. These courses will help you to gain a deeper, well-rounded understanding of the crypto world.

Cryptocurrency Hedge Fund

Crypto hedge funds are one of the initial forms of crypto funds that have gained significant popularity among the masses due to their convenience. Like other hedge funds, they offer minimum risks with noteworthy profitability. The investors just have to pay a small fee if they want to participate in the fund. Today, numerous hedge funds allow an investor to capitalize their money and gain huge profits. Some of these include:

Cryptocurrency Mutual Fund

As the name suggests, crypto mutual funds are created from the investments of multiple investors that pool up their capital to the crypto buy-and-hold fund. In return, they are given a share in the fund (usually in the form of “tokens”). These funds serve as a wonderful option for startup traders who want to grow their digital assets. Popular mutual funds today include:

Cryptocurrency Index Fund

The growing popularity of cryptocurrency has led investors to begin trades in this currency in the same way as they do for fiat. Hence, the crypto index funds emerge as a way for the newcomers to break into the crypto stock market. Some growing cryptocurrency index funds include:

Cryptocurrency Investment Fund

Cryptocurrency investment funds serve as an all-inclusive platform for investors to capitalize their money all together so as to reap the innate benefits of a team effort. Crypto investment funds help you monetize your assets either to avail market advantages or to support the mining machinery. Such funds are mostly associated with higher risks, yet higher profit margins.

Some popular crypto investment funds include:

The Difference Between Crypto Fund And A Common Hedge Fund

Although the various types of crypto funds sound similar to those applied for fiat currencies, crypto funds have significant differences, owing to the nature of this currency. The most common type of fund for fiat currencies is hedge funds. Though we do have a form of crypto hedge funds being practiced currently, they are not similar to the common hedge fund.

Below we draw a quick comparison between common hedge funds and crypto funds.

Cryptocurrency Funds Common Hedge Funds
The currency for crypto funds is decentralized Applies to fiat currencies
Substantial risks in investment The risk is much lower
Can earn you higher profits Due to limited risks, the profit margins are also low
Volatility of assets is much higher Volatility is limited
You cannot call your blockchain assets Call options are available for the assets
The share of the funds is in the form of “tokens” The investors are given a direct share of the funds
There aren’t any strict regulations for crypto funds Being a primitive method of funding, common hedge funds are fully regulated by laws.

Why Invest In A Crypto Fund

Although cryptocurrency is getting significant attention from the masses people, however, are skeptical about the genuineness and strength of this digital money. The investors are still a bit hesitant when it comes to investing assets in a cryptocurrency fund. One of the most common arguments which people present against the idea is the fact that this currency is still in its infancy. People are worried to invest their capital in such risky deals.

Nevertheless, there are certain benefits which you may enjoy after you invest in a crypto fund.

  • The foremost benefit of investing in a crypto fund is that the cryptocurrency is going to be the currency of the future. Therefore, investing in such crypto funds will help you earn a secure future.
  • Cryptocurrency mining has now become more complicated than it was in the past. Because of this, the rate of crypto mining is also much lowered due to the significant turnover of people towards cryptocurrency and the complications introduced in the mining algorithms. Thus, investing in crypto funds becomes a safe way to build up your assets.
  • Crypto funds offer higher profit margins (though with higher risks). That is how you can earn more money by investing in such funds.

Why You Should Create Your Own Crypto Fund

After you are convinced to participate in cryptocurrency funds, the next thought popping up in your head is, ”Why should I create a separate crypto fund?” Well, those who have built their funds agree that starting off one’s own cryptocurrency fund provides several benefits.

  • It is a convenient method to earn cryptocurrency without getting stuck in any complex mining algorithms.
  • It is a safe way to earn cryptocurrency and break into the crypto market for newcomers.
  • It requires less time and effort to build up your crypto assets with your own crypto fund as compared to any other method.

What Do You Need To Create Your Crypto Fund

Creating a crypto fund does not require much effort from you. You just have to ensure that you join the right platform from where you can find appropriate investors to begin your fund. The prerequisites for creating a crypto fund are:

  • Your crypto wallet credentials.
  • A platform according to the type of fund (mutual, hedge fund, index fund, etc.) you wish to create.
  • A strategy to share your profits with your investors.

What Are The Possible Profits

The profit margins in cryptocurrency funds cannot be specifically predicted. This is because cryptocurrencies are highly volatile with a 20%± change in cost a day. Therefore, the initial investment and fund planning need to be carefully devised while keeping these fluctuations in mind.

The brighter side of crypto funds also lies in the same fact. The volatility of cryptocurrencies can generate great profit margins. The only trick is to keep an eye on the currency rates. When the rates are low, take the opportunity to grab your share, and when the prices begin to rise, then this becomes the best time to sell your assets and enjoy the profits. For instance, if you have purchased 300,000 Stratis last year at a rate of $0.01, then that initial investment of $3,000 would now have earned you approx. $1 million, all because the current rates increased to $3.5. This is how an investment at the right time can make you a millionaire within just a short time.

How To Create A Crypto Fund

The first problem, which beginners face before starting a cryptocurrency venture is the initial investment. They look out for someone who could lend them an initial investment in order to proceed. Realizing the need to fill up this gap, several investors and venture capitalists came up with a willingness to invest their crypto assets with you. Yet, it was still difficult for beginners to find such investors. To solve this problem, today there are several dedicated platforms that let these fund managers meet the investors. These platforms provide the opportunity to newcomers so that they can create crypto funds for them.

How would you step it up to begin your crypto fund?

  • Plan out a strategy about how you are going to call for these funds. You can either opt for the “donations” to run your ICO campaign, or you can choose for an investment-based crypto venture.
  • Identify an appropriate investment value for your fund.
  • Time to materialize your plans! Step up to create a crypto fund by approaching the investors.
  • Get ready to share the tokens with your investors in return for the cryptocurrency that they are investing in your campaign.

Crypto funds provide a safe way to all those who find it difficult to indulge in the complex mining procedures recommended by venture capitalists (VCs). Especially for the beginners who do not know much about the complicated algorithms; creating a cryptocurrency fund is a wise idea.

Planning Your Crypto Fund

The boom in the costs of cryptocurrency has attracted several capitalists who want to invest their assets with data miners. Devising an ideal fund management strategy to increase your blockchain assets rapidly, especially when you do not have significant assets with you, is a wise idea.

While planning for your crypto fund, you must focus on some basic questions that would pop up in your investors’ minds when they hear your “fundraiser” call. Such as,

  • Why would someone be interested in investing with you?
  • What would he or she get after investing cryptocurrency to your fund?
  • How long will this cryptocurrency venture continue?

You should already have answers to these common issues when you start raising a crypto fund.

Remember, the goal of generating crypto funds is to add up your digital currency. Whereas the investors who agree to back you in the process also anticipate getting rewarded at the end of your campaign.

Creating Your Fund

Here is a quick guide on how you can proceed for your crypto fund management!

The Initial Coin Offering (ICO)

Starting a crypto fund is similar to offering the profit share to the investors in a company. Your Initial Public Offering (IPO) transaction forms the basis needed to attract investors towards your company. Therefore, you need to prepare a white paper agreement that discloses your project concept, duration, distribution of virtual tokens between you and the investors, and the goal of your ICO campaign.

Look Up For The Investors

In the next step, you need to find suitable investors who could lend their blockchain assets to you. The best method to find the appropriate investor for your crypto fund is to join online platforms.

Share “Tokens”

After you run your ICO campaign, move ahead to share your tokens with the investors. It is the main thing in which your investors were interested in from the very beginning of your ICO!

The Traditional Crypto Fund Collection vs. The Newer Software Platforms – What’s The Difference?

Well, you already know about the cryptocurrency lenders and the VCs who are ready to invest their digital currency with you. Nevertheless, there are a few issues associated with these traditional earning methods in the blockchain ecosystem:

  • It is difficult to find the lenders and venture capitalists who can invest their crypto assets with you on acceptable terms and conditions.
  • Your quest for finding these investors may take time.
  • You need to make separate marketing efforts when promoting your crypto fund.

Nevertheless, with crypto funds managed through software-based platforms, you do not need to worry about any of these problems. These platforms are powered by dedicated fund management software through which both the trader and the investor have mutually benefited. They just have to register themselves with these platforms and choose the desired trader/investor to collaborate with. The rest of the process is simple.

These crypto fund management platforms not only deal with the fund management but also handle the promotional activities for your fund. Moreover, KYC is not required in many of such cases as the software authorities already have the user’s entire data saved. This, in turn, saves time for KYC and fund promotion.

Here we give a quick view of what the differences are between the primitive methods of fundraising and the funds created through platforms.

Traditional Crypto Collection Crypto Fund Creation Through Software
Legal limitations No legal issues as the entire process is legitimate
Efforts required for KYC No KYC needed since the entire user details are gathered in the software
Separate fund promotions required Promotional activities handled by the software platforms
Individual trader’s efforts needed to approach investors Investors can be easily approached
Investors had to search for appropriate funds to invest in Fund traders are available to be approached by investors

Top 3 Software Platforms For Crypto Fund Management

With the rise of online crypto asset management platforms, such hindrances associated with conventional crypto fund management are being removed from the crypto exchange methods. These fund management websites provide a combined platform to investors and crypto managers. Some popular platforms include:

  • Tokenbox.io – It is the number one solution for all cryptocurrency fund matters. Providing a platform to the fund managers and the investors alike, Tokenbox also takes care of any and all the legal issues related to the tokenization.
  • ICONOMI – ICONOMI is established as a platform for digital asset management and is based on Ethereum smart contracts. It claims to serve as a podium for the digital asset array (DAA) managers and the investors in order to strengthen up the crypto economy.
  • Melonport – Melonport declares itself as a system of tools that empowers the traders and the investors to set up their own plans for crypto funds. Within the predefined set of rules, the system offers decentralized services which are convenient for all participants of an ICO.

Tokenbox.io – The Platform For Crypto Asset Fund Management

Tokenbox.io started off as an infrastructure platform for both the investors and traders. The idea of launching this unique crypto fund software platform belongs to The Token Fund founders, Vladimir Smerkis and Viktor Shpakovsky. Tokenbox serves as a one-stop solution for all traders and fund managers looking for investors who could trust their skill and help them raise their crypto assets. As the name says, the traders and fund managers are provided with “box” solutions, empowering them to create their own funds. Likewise, it also benefits the investors in a way that it brings various traders on the same platform, making it easier for the investors to select any appropriate crypto fund for investing.

Although there now are several software platforms offering fund creation and management services, Tokenbox is undoubtedly matchless due to multiple reasons. ICONOMI and Melonport are two such forums that provide crypto fund management. But none of these matches the incredible features that Tokenbox has. Below is a list of services exclusively offered by Tokenbox.

  • An ICO market.
  • Open registration for any diligent funds and trader (instead of being selected by the platform (e.g., ICONOMI) or the fund being created by the owners only (such as for Melonport)).
  • Compliance with legal regulations.
  • Integrated analytic tools.
  • A dedicated system of ratings for funds.

The first ever ICO is going to be held on November 14th, where Tokenbox tokens (TBX) will be generated. Previously, it was supposed to commence on October 24th. But, owing to the large number of token requests it received, it was decided that they must extend the TGE date until November 14th. You can easily join the private sale and take part in the initial token sale for this crypto fund. A single TBX token will cost 1 USD during the TGE, which will continue for 10 days.

Benefits Of Creating The Crypto Fund via Tokenbox

Among all the platforms offering cryptocurrency fund management services, tokenbox.io provides several advantages to the investors and the fund managers. It serves as a complete package for anyone who wants to participate in crypto funds with suitable conditions and beneficial services. Tokenbox.io takes care of all aspects that may hinder the process of smooth transactions between both parties.

  • No Legal Restraints – Tokenbox.io takes care to protect its customers from legal issues that commonly hinder crypto transactions. It serves as a legitimate “umbrella” fund that paves the way for a seamless exchange of digital assets.
  • No KYC Formalities – With Tokenbox.io, you don’t need to worry about KYC while interacting with the other party for crypto funds. It has a robust client verification system that ensures legitimate user profiles have all the necessary information.
  • No AML Measures Needed – As Tokenbox.io has a strict verification system with all necessary details of traders and investors, it ensures that the users’ profiles are legitimate and that there is not even the slightest chance for misuse of money generated through this platform. Hence, the stress of employing AML measures are not required for Tokenbox funds.
  • Multi-Currency Wallets – With Tokenbox.io, you can store all your digital assets in a single, universal multi-currency wallet.
  • Investment Accepted Through Fiat Money and Credit Cards – To ensure the convenience of its traders and investors, Tokenbox.io also accepts payments made through credit and debit cards or fiat money. Likewise, they can also perform reverse exchanges from tokens to fiat money.

Promoting Your Fund

Once you step ahead to create a crypto fund, how would you go about attracting more investors? Effective promotion and marketing campaigns are essential for any successful business. The same applies principle applies to crypto funds. You need to promote your fund through various channels to gain more investors.

Effective Ways To Promote Crypto Funds

Marketing a cryptocurrency fund is a bit different from traditional online marketing techniques. Smart promotion is the key to creating a successful crypto fund. Your target audience, in this case, would be the potential investors and those fund traders who wish to join your forum. However, targeting a broader audience will not be a good idea. You are not going to use any spam techniques over here since your project is not, and should not be, spam.

Here we have a list of some efficient ways through which you can promote your crypto fund.

Professional Social Media Platforms

Social media sites have undoubtedly been a great help to online marketers. Whether it is about businesses, products, or websites, social media can play a significant role in its marketing. Now the cryptocurrency marketers have also made their way to social media platforms for promotional purposes. Whether it is Facebook, Twitter, LinkedIn, Quora, or any other site, you can find several groups dedicated to cryptocurrency related discussions only. Joining and actively participating in these groups will significantly promote your cryptocurrency fund.

Announce Your Crypto Fund On ICO Websites

If you are using the “crowdfunding” strategy for your crypto fund, then advertising your fund on various ICO related websites is a useful promotional technique. There are numerous ICO sites which display these ICO’s and fund adverts in a calendrical form. In this way, anyone who is visiting such sites (whether a trader or an investor) will likely go through your ad and take an interest in your fund. Moreover, it is likely that tech bloggers will cover these upcoming ICOs in their articles. This increases the chances that your ICO will be picked up in their writings, and consequently, marketed to a much broader audience.

Some of these websites are listed below:

Conventional Promotional Strategies

Another efficient method to promote your crypto fund is through the native means of online marketing, that is, through blogs and articles. Of course, blogs are a proven way to attract readership and potential customers for any business or brand. Then how would they be ineffective for such a trending technology of cryptocurrency? Today just about every other person, at any educational level and belonging to any field, is interested in knowing about cryptocurrency and the ways to earn this kind of money. So, promoting your crypto funds by informative articles or press releases will not only attract readers towards your blog but it will also persuade them to join your fund.

The Best Channels Where You Can Promote Your Fund

You might be wondering whether the ways mentioned above are genuinely useful for crypto fund promotion or not. Especially if this is your first time marketing your crypto fund.

Well, here we discuss the most effective channels through which you can promote your crypto fund both effectively and efficiently. These channels employ one or more of the methods mentioned above, hence proving the genuineness and productiveness of these marketing tactics.

Software Platform For Crypto Fund Such As Tokenbox

Creating a crypto fund through software platforms, particularly through Tokenbox, is also beneficial for promotional purposes. With a Tokenbox fund, you do not need to run a marketing campaign for your crypto fund separately. Such platforms automatically post your fund to various related websites as advertisements. It not only provides you an umbrella for fund management and investment but it also takes care of promotion.

Reddit

Reddit is one of the most influential social forums that is continuously gaining more users every day. The growing interest of people towards Reddit has also made it a wonderful marketing opportunity. You can find several dedicated subreddits that deal with cryptocurrency and its related topics. Posting about your fund in one or more of such subreddits will greatly benefit your fund. Here are a few of the various dedicated subreddits for cryptocurrency.

Bitcointalk

Bitcointalk is also a popular domain among crypto fans. This is like a social media website where users can interact with each other regarding any new cryptocurrency and its related matters. Whether it is about Bitcoin or Altcoin, you will find several discussion forums over here. At the same time, users can earn cryptocurrency through this site without much effort. Bitcointalk.org also serves as a fantastic channel to promote your crypto fund if you want to attract more visitors and customers.

Summary

If you want to legally and securely create your own crypto fund, you only need to:

  1. Find your answers to the planning questions and set a clear goal
  2. Head to one of the crypto fund management platforms (for tokenbox.io you have the step by step guide explained by us)
  3. Start promoting your crypto fund on the platforms presented

source:  Howtotoken.com

Popular Cryptocurrency Hedge Funds

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Cryptocurrencies like Bitcoin, Litecoin, and Ethereum (and other altcoins) continue to make headlines and attract new investments, but they are still considered high risk and are speculative at best. That’s because cryptocurrency is only a decade old at this point, and is not (by its nature) backed by any government like fiat currency is. This makes it a new industry in a highly unregulated space, and that creates risk.

But that doesn’t mean you can’t make a lot of money with cryptocurrency. Many people do and it’s is the potential to make a lot of money quickly that is attracting hedge fund investors.

According to dictionary.com hedge funds are “a mutual fund organized in a limited partnership using high risk, speculative methods to obtain large profits.”

All investments carry risk, but both hedge funds and cryptocurrency carry more than average risk. Before you invest in a cryptocurrency hedge fund there are some things that you should know.

What to Know Before You Invest in a Cryptocurrency Hedge Fund

While it is possible to earn a lot of money very quickly in cryptocurrency hedge funds, it’s also possible that you can lose every bit of capital that you invest, as again, these are very volatile, risky, and speculative investments.

Cryptocurrencies are currently more like gambling than a traditional investment strategy of putting money into the broader stock market. This doesn’t mean you shouldn’t investigate them, just that you need to be aware of the risks that you are taking.

The value of cryptocurrency can go up as fast as it can go down. There is a lot of hype around cryptocurrency now, and that hype can lead to bubbles and crashes.

Now that I’ve gone over the risk potential, let’s look at three of the cryptocurrency hedge funds are out there and what makes them unique.

Cryptocurrency Hedge Funds

Pantera Capital

Currently Pantera Capital is managing over $700 million across five cryptocurrency funds in two different venture funds. You must have over $100,000 to invest in order to be eligible to invest in this fund. That makes this fund best for institutional investors or investors with very high net worth. This firm has been around since 2013, so it’s relatively old for a cryptocurrency hedge fund.

You’ll find that returns in this fund are all over the place, with the fund taking major drops this year. But if you have the money to invest (and potentially lose), it may be worth your time checking out.

CoinCapital

CoinCapital is more suited to individual investors than Pantera Capital, although they are still looking for people with a net worth of over $2.1 million. This hedge fund invests in a variety of cryptocurrencies, blockchain startups, and individual coin offerings. They manage over 40 different cryptocurrencies including many popular ones like Ethereum, Litecoin, Bitcoin, Ripple, and Dash.

One of the things that make CoinCapital stand out is that it’s managed by a team that has marketing, sales, and finance backgrounds.

BitcoinsReserve

BitcoinsReserve runs a unique cryptocurrency hedge fund called the Arbitrage fund. This fund automatically trades across different cryptocurrency exchanges in order to “correct market inefficiencies”.

This is an interesting strategy because many cryptocurrencies will follow different prices across different cryptocurrency exchanges. By taking advantage of these price differentials, the arbitrage fund seeks to gain profits. BitcoinsReserve is the most accessible fund of this bunch for average people. One of the other things that are unique about this fund is that their website is much less gated. You can find out exactly what they do and who they are without having to fill out long forms.

WARNING: There are also many other crypto hedge funds available to invest in, but it pays to keep in mind that hedge funds are high risk by nature because they are looking for significant, short-term gains instead of long-term, slower growth. When you combine that risk profile with the inherent riskiness of the cryptocurrency market you can get a lot of volatility and lose a lot of money very quickly.

If you decide to invest in cryptocurrency hedge funds, then make sure you are investing money that you have to lose and understand the risks you are taking. Cryptocurrency is an exciting development, but it’s too early to tell if it will have staying power or collapse after a bunch of hype.

source:  The Balance

Hedge Funds Are Tracking Private Jets to Find the Next Megadeal

  • Where there’s a plane, there’s a data trail.

 
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A private jet takes off from Jackson Hole Airport in Grand Teton National Park, Wyo., on June 13, 2019. PHOTOGRAPHER: DANIEL SLIM/AFP/GETTY IMAGES

If you have a meeting with Warren Buffett in Omaha and you want to keep it a secret, consider driving. The airports are being watched.

In April, a stock research firm told clients that a Gulfstream V owned by Houston-based Occidental Petroleum Corp. had been spotted at an Omaha airport. The immediate speculation was that Occidental executives were negotiating with Buffett’s Berkshire Hathaway Inc. to get financial help in their $38 billion offer for rival Anadarko Petroleum Corp. Two days later, Buffett announced a $10 billion investment in Occidental.

Where there’s a jet, there’s a data trail, and several “alternative data” firms are keeping tabs on private aircraft for hedge funds and other investors. The data on the Occidental plane came from Quandl Inc., which was acquired by Nasdaq Inc. in December. (Bloomberg LP, which publishes Bloomberg Businessweek, provides clients with reports from another company called JetTrack.)

There’s some evidence that aircraft-tracking can be used to get an early read on corporate news. A 2018 paper from security researchers at the University of Oxford and Switzerland’s federal Science and Technology department, tracked aircraft from three dozen public companies and identified seven instances of mergers-and-acquisitions activity. “It probably shouldn’t be your prime source of investing information, but as a feeder, as an alert of something else what might be going on, that’s where this work might be useful,” says Matthew Smith, a researcher at Oxford’s computer science department and one of the authors.

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Source: Data from FlightAirMap.com

Whether that’s enough to give investors an edge is another question; as alternative data becomes more available, it’s more likely to be rapidly reflected in stock prices. At the same time, some owners of private jets are doing their best to get their flights back into stealth mode.

Online aviation trackers that focus on commercial traffic, including FlightAware, allow anyone to see the position of thousands of airborne planes, based on in part a raw data feed provided by the Federal Aviation Administration. What’s not visible are 28,000 private craft, from small, single-engine turboprops to large, intercontinental business jets. An FAA policy lets these owners request that their plane’s identities be blocked from public display.

But the FAA isn’t the only data source. Many planes are equipped with a technology called Automatic Dependent Surveillance-Broadcast (ADS-B), which transmits an aircraft’s transponder code, call sign, model type, position, and airspeed. As of Jan. 1, 2020, the FAA will mandate that any aircraft flying in most U.S.-controlled airspace be equipped with ADS-B. Anyone with the right antennas can pick up ADS-B data and observe virtually all passing air traffic. A co-op called ADS-B Exchange takes information from a network of antennas around the world and makes it freely available.

Such information isn’t useful for only hedge funds. Dictator Alert tracks airplanes registered to or owned by authoritarian leaders—mostly in the Middle East and Africa—into and out of Geneva Airport in Switzerland and posts the information using a Twitter bot. The service was begun by two journalists and operates with a private ADS-B antenna near the airport.

In the U.S., the National Business Aviation Association has pressed the government for stricter blocking measures. “A businessperson should not have to give up her safety, security, and privacy or business confidentiality just because they get on an airplane,” says NBAA spokesman Dan Hubbard. The association is working with the FAA and others in the aviation industry to develop new tools for more effectively blocking data on private aircraft in the era of ADS-B coverage. “Claims that this information is secret or ‘sensitive’ do not hold water,” ADS-B Exchange says on its website. “Any member of the public with $100 and the ability to order parts from Amazon can receive this data.”

Just getting planes’ basic information isn’t enough for someone trying to track them for investing purposes. Figuring out who owns a particular aircraft, or is likely to be flying in it, can be tricky, given the common use of shell companies and foreign registrations. Paid services may task employees with the chore of following a jet’s paper trail as far as possible to suss out which aircraft are worth watching.

It seems unlikely that flying will ever be completely private again. “The technology to track these aircraft is cheap and widely available,” says David White, vice president of business development at Cirium, an aviation data and analytics firm. Even if public data sources mask more data about flights, companies with hedge fund clients could “pick and choose the business hubs” where private aircraft movements would most likely yield cues about corporate activity, White says. “It’s not rocket science, that’s for sure.”

source: Bloomberg Businessweek

Is There a Big Short in Bitcoin?

Trading activity has grown in CME’s bitcoin futures in recent months, along with the rebound in the cryptocurrency’s price

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By Alexander Osipovich

Hedge funds and other big traders are betting that bitcoin will fall, even as the digital currency has risen above $11,000 on a new wave of crypto-optimism.

That is the picture that emerges from bitcoin futures listed on CME Group Inc., CME 0.11%the biggest U.S. exchange operator. Futures are contracts that let traders bet on whether an asset—in this case, bitcoin—will rise or fall.

Hedge funds and other money managers held about 14% more bearish “short” positions in CME bitcoin futures last week than they did bullish “long” positions, according to a recent Commodity Futures Trading Commission report.

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Other large traders were even more bearish. “Other reportables”—a loose category of firms that don’t necessarily manage money for outside investors—held more than three times as many short positions in bitcoin futures as long ones, the CFTC report shows.

So who is the optimist? The report shows it is mostly small investors taking the other side of the trade. Among traders with fewer than 25 bitcoin contracts, a category that likely captures many individuals placing bets in bitcoin, long wagers outnumbered short bets by 4 to 1.

“Traditional market participants may be more skeptical of [bitcoin] than millennial day traders,” said George Michalopoulos, a portfolio manager with Chicago fund manager Typhon Capital Management LLC, although he stressed that his views were speculative and that it is hard to know what is driving the CFTC’s numbers.

The CFTC report, which came out Friday, reflected the positioning of market players on June 18, when one bitcoin could buy around $9,000. The cryptocurrency was trading at $11,379.96 late Tuesday afternoon, up 4.6% from the day before.

Though it comes with a lag, the weekly CFTC report offers a glimpse into how various types of traders are positioned in bitcoin futures. Commodity traders closely follow similar CFTC reports on futures like crude oil, wheat, and corn for hints of what is driving the market.

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The CFTC data shows that hedge funds have been short bitcoin since February, though they recently pared their bearish bets.

On June 11, short bets among hedge funds outweighed long bets by 47%, a gap that narrowed to 14% the following week.

Such data don’t necessarily mean hedge funds are placing outright bets that bitcoin will drop. The short bets could also be part of hedging strategies: for instance, a fund with a portfolio of bitcoins might go short at CME as insurance against the value of bitcoin dropping.

Trading activity has grown in CME’s bitcoin futures in recent months, along with the rebound in bitcoin’s price. In May, the average daily trading volume in the CME contract hit a record $515 million, the exchange operator says L. Asher Corson, a cryptocurrency analyst at Chicago proprietary trading firm Consolidated Trading, said traders who want to short bitcoin don’t have many choices besides CME.

One option is for them to borrow bitcoins from another trading firm, sell them and return an equivalent amount of bitcoins to that firm later—a process similar to how short selling works in stocks. But the difference is that, in the volatile bitcoin market, few firms are willing to offer that service to short sellers because of the risk of their customers defaulting, Mr. Corson said.

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A bitcoin ATM exchange at Schiphol Airport, the Netherlands. PHOTO: UTRECHT/ACTION PRESS/ZUMA PRESS

“CME right now is providing a unique ability for the larger players to have massive short positions with very low counterparty risk,” Mr. Corson said.

Volumes in CME’s bitcoin futures contract got a lift when a competing U.S. exchange operator that offered a similar contract, Cboe Global Markets Inc., recently discontinued it. Cboe’s last bitcoin futures contract expired last week.

But CME is set to face additional competition soon. Intercontinental Exchange Inc., the owner of the New York Stock Exchange, is set to begin testing of a new bitcoin futures contract in July. LedgerX, a startup trading platform for bitcoin options, plans to launch its own futures on the cryptocurrency after the CFTC said Tuesday it had won approval to become a futures exchange. And a group of prominent financial firms, including TD Ameritrade HoldingCorp. and Fidelity Investments, are backing a venture called ErisX, which plans to offer both futures and spot trading of cryptocurrencies.

Volumes in CME’s contract remain a fraction of the billions of dollars’ worth of daily activity in the bitcoin “spot” market, where actual units of the digital currency change hands. But some recent studies suggest that the size of the bitcoin spot market is inflated because of rampant fake trading at cryptocurrency exchanges.

That should prompt traders to take a closer look at CME bitcoin futures, analysts from JPMorgan Chase & Co. said in a June 14 report. As a regulated exchange, CME bars wash trading—in which traders engage in back-and-forth buying and selling to generate fake volume—and violators can be subject to both CME and CFTC fines. That makes CME’s volumes more trustworthy.

“The importance of the listed futures market has been significantly understated,” the JPMorgan analysts wrote.

source:  WSJ.com