ALPHABIT PHILOSOPHY


At Alphabit, we believe in the blockchain. We believe in decentralisation. We do not believe in centralised entities and fiat currency systems. It is with that in mind, that our goal is to generate our clients more bitcoin than they started with. Not only that, we do it whilst generating lower volatility than that exhibited by bitcoin itself.

WE OUTPERFORM BITCOIN,
AND WE DO IT WITH LESS RISK.

We blend investment strategies to improve the efficiency frontier of the fund. That means, we generate higher returns per unit of risk than that of Bitcoin.




INVESTMENT MANAGEMENT PROCESS


Benchmarked to bitcoin, any position held within the fund which is not bitcoin is an active position. Every active position is taken with a view to it generating a higher return than that of simply holding bitcoin.

Alphabit generates excess returns over beta (bitcoin market return) via a number of different ways.

MANUAL TRADING

Manual trading is what Alphabit does, day in, day out buying and selling altcoins with a view to generating strong returns. These positions maybe strategic, longer term plays and stay in the portfolio overweight for a prolonged period of time, or may be traded, buy in one day, and sell out the next day in order to capitalize on the favourable volatility of a token relative to bitcoin.

ALGORITHMIC TRADING

Algo-trading generates alpha for the company broadly through two main avenues. The first is by arbitraging varying prices across various different exchanges.

Our Algo’s also generate excess returns through market making a specific token, buying and selling at differing prices on one exchange giving volume to the token in question.

TOKENISED STARTUP INVESTMENTS

Alphabit has a team of highly experienced cryptographic currency investors. We scour the whole of the playing field to identify great companies, great teams, and profitable business models. Once these opportunities are identified, then we take a position, always at the most favourable terms for any investor within the company. Examples of investments to date are SKY Coin, MetalPay, Nukleus Vision, Aelf, Data, VideoCoin, and more.

Skycoins Metal Nukleus Aelf Data Videocoin Republic Protocol Crown Machine

FUTURES

Alphabit uses futures positions through the CME to hedge the portfolio position, and reduce downside volatility of the portfolio itseslf. The fund has the mandate to either buy or sell positions, so the fund may increase/decrease its leverage should it wish by up to 2.5X of the portfolio allocation to the Futures account.

CASH MANAGEMENT

Alphabit uses cash to dampen the volatility of the portfolio from time to time. The fund has a mandate to go up to 50% cash should it wish, further adding downside protection for its limited partners.

LIAM ROBERTSON

Chief Executive Officer

Chartered Financial Analyst (CFA) and Chartered Alternative Investment Analyst (CAIA), Liam holds a degree in Economics from the University of Newcastle-Upon-Tyne. He also holds a Masters in Finance from the University of Durham.

Starting as a Portfolio Manager for UK-based IFA company, Liam quickly moved up to Analyst at a London-based Fund of Investment Trusts.

He has sat on the Yen desk for Light Peak Capital and a Hedge Fund, successfully trading Euros, Yen and Dollar Yen. After successfully increasing his book ve-fold in 18 months, he moved back to private client wealth management.