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Author Topic: [BITOBS] Open-ended Investment Fund With Variable Capital  (Read 6061 times)
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azaniet
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November 21, 2013, 09:52:58 AM
Last edit: November 25, 2013, 12:08:47 PM by azaniet
 #1

This is the official BITOBS thread serving as a means of communicating important notices, and answering questions. It can also serve as platform for trading shares between investors.

Announcement of the Fund
Previous Thread

I have built a website with information on the fund that I am operating.

It’s named BITOBS: www.bitobs.net

Logo:
http://bitobs.net/img/logo.png


The fund is now public, so everyone can invest.

I have tried to be as clear as possible about how the Fund is operated.
If you are interested, please have a look and let me know when anything is unclear or should be further explained.

Currently, the Fund will only accept the issuance and redemption of shares directly.

Regarding a possible IPO please let me know whether you would be interested in this. Of course, it would make shares freely tradable between investors. However, the unreliability of the Bitcoin securities exchanges is a problem (e.g. withdrawals from BitFunder are currently stuck). Cryptostocks is an option, but involves costs. Maybe a forum trading method with escrow would be a more viable option. Your opinion is appreciated.

What is BITOBS?
BITOBS is an open-ended investment fund with a variable capital. The objective of the Fund is to obtain a positive return while preserving a sufficient risk spreading. The aim is to realize an average annual total return of at least 25%, after deduction of all expenses.

Investment strategy (short version):
     1. Anticipating the Bitcoin exchange rate.
     2. Investing in arbitrage opportunities that may arise.

Investment restrictions (short version):
  • At all times, a minimum of 25% of the Fund’s NAV must be held in fiat or Bitcoin.
  • Investments in Bitcoin (mining) assets are not permitted.
  • A maximum of 50% of the Fund’s size can be used for any investment opportunity.
  • Stock lending is permitted.
  • Borrowing is permitted for up to 25% of the Fund's NAV.

Other notes:
  • Current NAV/share is BTC0.012583
  • Minimum investment is 100 shares.



Monthly Report - October:
Result: the NAV/share decreased by 1.52%.

Due to a significant increase in the Bitcoin exchange rate, the Fund struggled to retain its value. Although, we were able to gain sporadic returns which minimized the Fund's depreciation, this month's return is -1.52%.

Generally, a part of our strategy involves selling part of the Fund's Bitcoins whenever there is a reason to do so, i.e. an indication of an imminent decrease in the Bitcoin exchange rate. While there were almost none of these indications, we have held 75% of the Fund's value in Bitcoin, most of the time. The other 25% of Fund's NAV (held in fiat) decreased by almost 37% (BTC-denominated).

The Silk Road raid of October 2nd; we were able to profit from the price drop by selling part of the Fund's Bitcoins before the exchange rate decreased any further. Additional active trading resulted in a decent return of 9% for that day.

Market inefficiencies were exploited wherever possible, however the opportunities were limited. Any schemes that would involve selling Bitcoins and withdrawing fiat through Mt.Gox have been avoided due to the (increasingly) long 'cycle times' associated with Mt.Gox withdrawals.

Finally, we were able to 'bet' on the Bitcoin price going up, by borrowing fiat money (an equivalent of 10% of the Fund's NAV). After deduction of interest payments, these funds gained a 19.67% return.

Overall, it has been a month in which the Fund struggled due to the decreasing value of the fiat held by the Fund, but the overall result of -1.52% is tolerable.



I will do my best to continue creating value for my investors. Feedback is always welcome!

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November 21, 2013, 01:17:17 PM
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List of shareholders:

Bitcoin address      Amount of shares
15uDCqxq58mxHbt1wJWofvCoqFWM2mqnhx      20000
15nmx7cTm36J3HqFcLEUiarTDx5HTAd2wu      22300
1nAjoG9UZKo1Z6KBQz5seC4n4jP9y5kyq      4400
1LX1836w5bVdGnwnJd8r3aJEcZMCcYG4kp      500
1J5vJemVbP79LciCm5tHWxTjG4CAx3xraU      1000
1FRYcvKQPQieANCw2ZpeYZTEbAxuyxxZDZ      2000
1PPTs1uS5CQ3TNQkpNRNn2Z6Dt5cPvXsAe      200
18LJhwUGvTCQRtzfqjKtrA1fDrgbzSuX2T      100
19vgHnf6TKvRbv5sPqYsgd1GrE2f2bbP2o      100
1D5YZTGS7bTKzb5GeTHeb4hjaniv8YcMhU      109
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November 24, 2013, 12:05:52 PM
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List of shareholders:

Bitcoin address      Amount of shares
15uDCqxq58mxHbt1wJWofvCoqFWM2mqnhx      20000
15nmx7cTm36J3HqFcLEUiarTDx5HTAd2wu      22300
1nAjoG9UZKo1Z6KBQz5seC4n4jP9y5kyq      4400
1LX1836w5bVdGnwnJd8r3aJEcZMCcYG4kp      500
1J5vJemVbP79LciCm5tHWxTjG4CAx3xraU      1000
1FRYcvKQPQieANCw2ZpeYZTEbAxuyxxZDZ      2000
1PPTs1uS5CQ3TNQkpNRNn2Z6Dt5cPvXsAe      200
18LJhwUGvTCQRtzfqjKtrA1fDrgbzSuX2T      100
19vgHnf6TKvRbv5sPqYsgd1GrE2f2bbP2o      100
1D5YZTGS7bTKzb5GeTHeb4hjaniv8YcMhU      109
13xFWLjCfgwWjvBnTTy2RULpaJwKqMwKzG      353
18CaxbkRPVrufpPT1UEQ2zqdidWc5hQkAW      100
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November 25, 2013, 01:21:46 PM
Last edit: December 01, 2013, 06:23:41 PM by azaniet
 #4

Monthly Report - November:

Result: the NAV/share increased by 12.24%.

Our previous report was posted on November 25th. We refer to this post for information on the Fund until that date.
In the last couple days, we noticed the Bitcoin exchange rate culminating. Additional news reports from third parties made us decide to sell the majority of our Bitcoins for over $1100 each. Fortunately, we have indeed seen the price decline to $980 (on Bitstamp) as of this moment. We expect the Bitcoin price to decline even further.

Furthermore, we have paid back our fiat debt, which was borrowed in the beginning of the month. These funds gained a return of almost 200% until November 30th.

Although nothing to do with the BITOBS fund, I have personally gained staggering results from my altcoin fund, which I have been operating since May. This has been a passive investment until last week where active trading and new investments have led to an increase in the total NAV by 453% since May.

We will allow the BITOBS to gain results from investing in altcoins as well by adding this new strategy to our investment fund. This will be described on our website this week.  

Overall it has been a good and educational month, and we are pleased with the result.  
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