Counting House: Crypto Hedge Fund

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Disclaimer:

  • This is not financial advice this is an interview with Counting House Fund.
  • The answers have been provided by the Counting House Fund.
  • Investitin.com staff are not financial advisors; this is not financial advice.
  • This is not a buy, sell or hold recommendation of any assets mentioned in this interview.
  • Do your own research before you invest in anything.
  • This press release/article/interview has been published for free.
  • Your capital as at extreme risk and you can lose it all when investing in ICOs and cryptos.
  • Please discuss this with your local financial advisor before you invest.
  • Full Disclaimer

Can you introduce yourself and your role in Counting House Fund?

My name is Tim Dawson, I am one of the two Directors of Countinghouse and I am responsible for many of the algorithms and strategies we employ.

What is the team structure?

We have two directors, Mike Pomery and myself. We have Steve Pogacic our Ethics Manager, and an experienced trader. We have our HR Manager Elizabeth Simons, and a support staff of twelve and growing! We also have a great partnership with Whisper Connect. They handle all our internet, VPS and security needs. As far as advisors we have Chris Yap, who has always been a great source of advice when we are acquiring physical and development assets, and we have Jack Smith who produces and advises us on video and other multi media forms of communication.

What is the experience of the team in the crypto space?

We are relatively new to crypto. We have only live-tested crypto trading for one year, but honestly the type of trading we do hasn’t really been possible on crypto markets until the second half of 2016. We have been interested in cryptocurrency for quite a long time, the infrastructure just wasn’t there in the early days.

Do you have links to videos of team members discussing the fund?

We will really soon, they have been filmed we are just waiting on the production and editing to be completed. Keep an eye out on our social media or website for these coming out. We will be doing a series of short videos going forward as well. Anyone who doesn’t want to miss a thing can just join our telegram chat or sign up to our email list on our webpage.

Why does the fund need a Real-World Ethics Manager? 

Steve was originally focused on trading strategies but as more concern for the environment and unexpected social effects grew, he started to shift his attention to our more passive investments, making sure they don’t compromise our ethics or company values. What has been the most interesting thing, is that our passive investments have doing better then the market averages since we started analysing for both financial and ethical performance of each project we invest in.

What are the fees to investors?

We take a commission out of profits of 7% each month. So as an example, if we make a profit of 2,000 ETH in a month, we would take 140ETH as a commission. This is very similar to the structure we use with our forex fund and we think it is important that we are only rewarded when we profit investors.

What is the minimum amount of investment?

This is one of the most exciting things about using the blockchain for a hedge fund; the minimum investment is just 1CHT. This means you can invest anything from one dollar to millions of dollars. We feel this is important if we are to truly embrace the democratized nature of the blockchain and social mobility this will allow.

What is the total number of tokens, is Counting House Fund a closed cap fund?

Yes, Countinghouse Fund is a closed ended, tokenised fund with a total of 20,000,000 CHT tokens.

At what price where the tokens at private presale sold for?

They we’re sold for the same price as the upcoming presale at 1300CHT per 1 Eth. At the time that we transferred that into our trading accounts it was just over $4 Million in total.

Post ICO how will counting house communicate with investors?

This is a great question, as it pertains to our philosophy of anonymity for our investors. We will publicly announce (through our website, social media pages and press releases to exchanges) the performance of our fund. We will do this both monthly and weekly with quarterly roundups. The weekly updates will be brief, with just the most relevant information for investors. Our monthly reports will be in much greater detail (similar to our financial report on our webpage) and the quarterly reports will be in a more text-based, blog style report. We will also be sending these report links to our telegram and email lists.

Will the fund use short strategies?

Yes it does, in fact if you refer to our Financial Report on our webpage, you will notice that the algorithms have a slight bias toward short trades, even in a bullish year like 2017. This is because statistically price drops are faster and more dramatic, and being that our fund works not from prediction but instead from mathematical methods to force profit out of movement there will be a greater weight on short trades to counter the rapid moving effects they cause.

Will the trading be fully automated, semi-automated or executed by human traders?

The main trading algorithms are fully automated with human observers to make sure there is nothing unusual happening. If something strange was to occur one of our traders would jump in and take over from the algorithms. The arbitrage algorithms require human assistance, so these are only a semi-automated trade. It would only be on a very rare occasion that a human trader would operate without the assistance of an algorithm, this might be in response to a major geo-political event for example.

Will the fund release dividends?

Yes, but not on a regular basis, instead we will send out dividends when the fund grows too big and causes growth to taper. But of course, investors can liquidate their holding at any time and do it relatively anonymously.

The fund will invest in arbitrage strategies, what is arbitrage and why how does the fund profit from it?

Yes, arbitrage is a mathematical method to exploit a variance between two or more markets for profit. These can be a simple two way transaction where an asset is purchased at a lower price on one exchange and sold for more elsewhere, but to put it plainly this wouldn’t work very well on crypto exchanges due to delays in transaction times.

Instead what we will be doing is double sided arbitrage, this is where you hold two accounts of different exchangeable assets (one account with bitcoin and one with US dollars as an example), then both assets are exchanged for the opposite asset in the different exchange at the same time. The result being that at the end you will hold more of both or one of the assets, increasing the value of your total holding. This can be done through more complex manoeuvres too, for example between three or four assets instead of just two.

What will be the fund strategies?

60% of the fund will be used in a direct-hedging, algorithmic trading strategy that uses mathematical principles to force profit from movement (obviously it’s commercially sensitive to reveal exactly how this works), 30% of the fund will be used for arbitrage (this percentage may be scaled back in the future due to the increase in market efficiency over time) and 10% will be invested more passively into ICO’s, physical assets and debentures.

Can the fund short?

As we touched on in an earlier question, the direct hedging strategy can short and in fact has a slight bias toward that.

Does the fund use leverage?

Yes, we do. However it should be noted that our margin is heavily exposed. Usually only a couple of percent of our available margin is ever used.

What is the average holding of one crypto asset?

The holdings in the more commonly trades assets like BTC and ETH will be considerably larger then some of the more peripheral assets, mainly due to the larger spreads and reduced liquidity in some smaller coins. As we discussed earlier, less then 10% will be invested in ICOs, and we will be very selective in that process with both financial and ethical evaluation of each project before investing. We will always have a holding of Fiat currency too, we hold this in 100% liquidity banks and some in trading trust accounts with our brokers backed by major banks.

When will the fund start trading?

Almost immediately after the ICO has finished. We already have all the architecture in place from our existing fund and will be able to action our investors funds as soon as they are in the required accounts to do so.

What are the ICO key dates?

ICO Dates: 3rd April 2018 0:00 GMT to 15th May 2018 0:00 GMT. A pre-sale bonus of 30% will be in effect in the first week from launch, and a 15% bonus will apply to early investors for seven days following the pre-sale period. More details on these bonuses can be seen in our Whitepaper.

What are the requirements to be able to invest in the pre-sale?

Due to our anonymity policy we do not want to know anything that could identify you, including what country you are from, so the only thing you will need is a ETH wallet an some ETH to invest with! We have a link on our webpage to download Metamask if you don’t yet have an ETH wallet.

For more information please visit : http://countinghousefund.com

We thank Tim Dawson.

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