Invictus’ assets under management (AUM) blew past expectations, growing by 29.46% to $145 million over June. The impressive success seen throughout Q2 2021 can largely be attributed to the funds offering investors downside protection during harsh market conditions, therefore preserving capital during sharp drawdown events.
The Invictus team has implemented dynamic cash hedging mechanisms and alternative yield-generation trading strategies to limit capital loss and earn additional yield. As a new wave of regulatory uncertainty struck the cryptocurrency market and forced prices down, the simple average return across the suite of seven Invictus funds remained positive at 9.85% for Q2 2021. This represents an outstanding annualized return of 45.61%.
Essentially, Invictus has been providing investors with peace of mind even when extreme fear took over the cryptocurrency markets. Invictus Capital funds became a hedge against the heightened emotions that often lead individuals to exit what can otherwise be considered great investments. Both the Crypto10 Hedged (C10) and the Margin Lending (IML) funds continued to post steady returns, with the former increasing by 4.99% and the latter achieving an annualized return of 15.42% to see the quarter through.
Likewise, the Hyperion VC Fund (IHF), renowned as the world’s first tokenized venture capital fund, saw its net asset value (NAV) rise to $0.4705. The upswing represents a whopping 89.90% appreciation for the quarter, equating to a 515% return since inception.
The Gold Plus (IGP) and Emerging Markets Solar (EMS) funds also rose by 4.86% and 4.16% respectively. IGP outperformed the ultra-popular and globally-traded GLD ETF, despite the weakness that the spot gold market has experienced since mid-2020. Both of these alternative funds successfully achieved their mandate as the Invictus team implemented arbitrage opportunities and capitalized on the strengthening U.S. dollar.
While the performance of the Invictus portfolio of funds speaks for itself about the value that Invictus Capital brings to investors, their team of world-class analysts, academics, and industry experts continues to research ways to better serve their community of investors.
To further improve access to the Invictus Investor Portal, the team is launching the Invictus Capital Mobile App in October 2021, allowing investors to manage their investments from the palm of their hands. In conjunction with this, they are also incorporating several enhancements to the Invictus Wallet, where users are able to custody their investments on the platform. Users can now view all transactions in the Invictus Wallet and control gas prices to limit the occurrence of “stuck” transactions. These features enable greater customization of transactions with the ability to cancel those that are pending.
Moreover, the Invictus Yield Vault will provide users with a new way to earn additional yield by loaning out their cryptocurrencies. One of the main features that stand out from the Invictus Yield Vault is the ability to maintain a fixed competitive high-interest rate for the duration of the crypto asset loan regardless of the market conditions. Lenders would now have a fail-safe opportunity to enhance their returns.
Invictus Capital is now well-positioned to take advantage of the capital appreciation for which digital assets are known best while maintaining a solid foothold in traditional markets. The continued scaling of funds’ yield-generation tactics is expected to keep delivering additional upside to their investors.
For a full update on Invictus Capital and its fund offerings, please see the quarterly report here.