1. What assets does SCF invest in and why?
SCF invests in BTC, ETH, XRP, Gold and Silver. We believe that the next few years will see the continued growth of Blockchain technology and also strains in the mainstream financial markets. During such times, the monetary metals normally appreciate in value.
2. Cryptocurrencies can be volatile. How does SCF intend to reduce the volatility of its investor’s equity?
Cryptocurrencies can indeed be volatile. Whilst many investors have made significant returns in this space, many have also lost substantial funds. Therefore, a disciplined trading strategy that reduces risk via the use of stop losses and money management rules is necessary to mitigate against large draw downs. However, volatility, if it is in your favour, can be a good thing. This is why we measure our performance in Sortino Ratios rather than Sharpe Ratios.
3. Why does SCF not invest in alt coins?
We believe that although many of the alt coins might have some merit, most of them will not succeed in the long run. Furthermore, many alt coins are only traded at smaller exchanges and have little liquidity. Therefore, in order to ensure that our clients are not unduly exposed to counter party and liquidity risk we do not invest in alt coins.
4. Why does SCF invest in physical bullion? Is it not expensive?
SCF invests in physical bullion for a number of reasons. Firstly, we believe that Gold and Silver are likely to appreciate in value during the next 3-5 years. The reason that we invest in physical bullion is that it reduces our counterparty risk to the financial sector.
5. What is “Cold Storage?”
“Cold Storage” is a term to describe the fact that the private keys that are capable of accessing the public keys of a cryptocurrency – E.g. Bitcoin are held offline in a secure manner. This makes accessing said keys and stealing the resulting Bitcoins much more difficult for a malicious attacker.
6. Does SCF use leverage? Is that not risky?
SCF does use leverage in conservative amounts. The reason is that we are not ‘in the market’ all of the time. Rather, we aim to time trades that we believe will provide an outsized return. When this is the case, we use leverage in order to enhance our profits.
7. What does CFD stand for?
Contracts for Difference. This is a form of financial derivative. When one invests in a CFD, the investor does not own the actual underlying commodity (E.g a barrel of oil.) Instead, the investor merely ‘owns the price’. If he/she is ‘long’ he hopes the price will appreciate, if he is ‘short’ he hopes that the price will decline.
8. Why does SCF have CFD brokerage accounts?
SCF holds accounts at CFD brokerages for a number of reasons. Firstly, they offer insurance whereas many cryptocurrency brokerages do not. Secondly, they often have more sophisticated trading engines. Lastly, they stand a level removed from the underlying cryptocurrencies and therefore are safer from a regulatory standpoint.
9. Does SCF invest directly in Cryptocurrencies? Are the exchanges safe?
SCF does invest directly in cryptocurrencies via cryptocurrency exchanges for a number of reasons. Firstly, crypto is genuinely a 24/7/365 market and therefore it is necessary to access these markets at all times – not just business hours. Secondly, the brokerages that we use typically allow lesser amounts of leverage and are, in our opinion, less likely to suffer in hyper volatility events. SCF only uses brokerages with long term established reputations and risk controls.
10. How do I become an investor?
Email firstname.lastname@example.org and state your full name and nationality. Your request will then be transferred to our Fund Administrator.
11. What is an Accredited Investor?
An Accredited Investor as described in Singapore’s Securities and Futures Act is:
- An individual whose net personal assets exceed in value the minimum amount of S$2 million (or its equivalent in a foreign currency) or such other amount as the Authority may prescribe in place of the first amount, and in determining whether an individual’s net personal assets exceeds the minimum amount, the estimated fair market value of an individual’s primary residence less any outstanding amounts in respect of any credit facility granted to the individual or any other person that is secured by that residence, shall not account for more than $1 million (or its equivalent in a foreign currency) of the minimum amount; or
- Whose income in the preceding 12 months is not less than S$300,000 (or its equivalent in a foreign currency) or such other amount as the Authority may prescribe in place of the first amount;
- A corporation with net assets exceeding S$10 million in value (or its equivalent in a foreign currency).
12. How do I become verified as an accredited investor?
Our Fund Administrator will provide you with a self certification of your being an Accredited Investor. However, they may request evidence for this.
13. What is the minimum investment at SCF?
Our minimum investment is $100,000 USD. This is in compliance with CIMA regulations.
14. What does CIMA stand for?
It stands for “Cayman Islands Monetary Authority”.
15. Do you accept US clients?
We do accept US Accredited Investors and Institutional Clients. However, because of the increased reporting requirements associated with US customers, our minimum investment account is $500,000 USD.
16. How long is the SCF lockup period? Can I redeem my funds before this?
The minimum lockup period is one year. It is not possible to withdraw funds in less than one year.
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