Portal Asset Management announced the launch of its first fund focused on cryptocurrency and blockchain assets.
Dubbed the Portal Digital Fund operates via a fund-of-funds structure, targeting sophisticated investors in the Asia-Pacific. Portal aims to have over $100m in funds under management in the long term.
Initial fundraising closes on March 31, 2020, and will focus on high net worth individuals, family offices and boutique institutional investors.
Bad news tends to be good news for crypto, because it’s seen as an alternative store of value"
"With global assets now capable of being digitised, fractionated and traded using blockchain technologies, digital assets are set to become the fourth superclass, joining the traditional classes of store of wealth, capital and goods," the boutique investment firm added.
Portal will create a diversified portfolio of between four and eight specialist global fund managers, to deliver returns uncorrelated with traditional securities markets.
The Singapore-headquartered manager said the portfolio would be focused on two primary investment streams - the first one being quantitative-driven trading covering systematic, momentum and arbitrage strategies while the other is venture capital and private equity funds investing in blockchain protocol infrastructure. The fund managers will initially focus on the former strategy because of its higher potential returns.
The new fund is expected to generate 25% net of fees, with lower volatility than the overall crypto markets.
Portal CIO Mark Witten said: "When you look at the cryptocurrency world, it's completely uncorrelated. The returns have not been, in any way, influenced by what's going on.
"If anything, bad news tends to be good news for crypto, because it's seen as an alternative store of value," he added.
Portal has managed to bring more than 700 digital fund managers over the past two years span and reviewed more than 100 via a perfectly-planned investment process clubbed with a result-oriented investment analysis approach.