Recently, Rivemont Crypto Fund made headlines when it was reported that a large chunk of its assets is actually composed of cash, which is a rather surprising position for a fund that supposedly makes its money out of digital currencies. However, the Canadian-based fund later clarified that such a large cash stockpile is just part of its strategy and is only a temporary situation.
Rivemont Crypto Fund’s Asset Mix
Rivemont Crypto Fund raised some eyebrows in the crypto investing community when Bloomberg published an article stating that, surprisingly, 91 percent of its assets are in cash.
According to the report, 91 percent of its $2.3 million worth of assets are composed of cash as of July 13, 2018, while the remaining 9 percent are in Bitcoins. Run by Quebec-based Rivemont Investments, the Rivemont Crypto Fund is also known as Canada’s only actively managed cryptocurrency fund.
Apparently, the firm is currently in a wait-and-see mode, which is explained by its president and portfolio manager, Martime Lalonde, who said:
“I would say that the cryptocurrency market right now is not really in a bull market so people are waiting to see if it’s going down further.”
Fund Says Unusual Mix Only Temporary
Rivemont Crypto Fund quickly explained in a Facebook post why it maintained 91 percent of the firm’s assets in cash as of July 13, 2018. Apparently, it is all part of its investment strategy and that it was only a temporary position. On its Facebook page, Rivemont Crypto Fund wrote:
“If the title may have made you jump when it was written that our positioning was 90% in cash, the indicators in order for us to take position mentioned in the article have surely reassured you. We have indeed precisely followed our strategy, quickly redeploying capital during the recovery we observed in recent days. That’s the value and effectiveness of our active management strategy! We were right with our key levels shared in our update last week, which has allowed us to deploy the vast majority of capital before Tuesday’s big rally.”
In fact, it is a strategy that Rivemont Crypto Fund is particularly proud of. By reinvesting the funds in cryptocurrencies in time for “Tuesday’s big rally,” the fund expects a 7 percent return in just one week. The post read:
“Our investors have therefore profited from most of it. We estimate the fund’s return at approximately 7% this week.”
These days, the fund’s asset mix is in line with what you would normally expect in cryptocurrency-focused funds. Rivemont Crypto announced that around 90 percent of its assets are now in cryptos.
The fund also noted some of the recent positive developments in the crypto industry. One such good news is that BlackRock, the world’s largest asset manager, is now planning to go into cryptocurrencies. In addition, Goldman Sach’s CEO David Solomon is now showing enthusiasm in cryptos.