What is the Black Fund?
The Future of Money... and Opportunity
After carefully evaluating the Digital Currency and Digital Asset-backed markets, we began investing in 2012. After the meteoric rise in a basket of currencies and projects we realized that there was a unique opportunity to benefit from this emerging technology... and the Black Fund was created so that others could participate in this rare opportunity.
The Black Fund "Thesis"
The Black Fund was developed using our rigorous analysis strategy that merges the brightest minds in the blockchain and distributed ledger software development space (Cofounding & Launching 2 Digital Currencies) along with Currency/Commodity trading expertise derived from the Precious Metals and Derivatives markets over many years.
Our team is a competent mix of specialized tech talent, FX and Precious Metals investors, and traditional Securities market analysts.
Why Us?
Our team has averaged triple-digit gains since 2015 (when we launched our first small fund) and while the past is no predictor of future success, we are positioned to take the best advantage of this emerging digital asset class.
*Involvement in the BLACK FUND is limited to Accredited Investors only
About the Black Fund
What we plan to do with the Black Fund
The goal of the Fund (a limited Partnership) is to invest in Digital Currencies—bitcoin, Ethereum, Ripple, etc.—as well as the companies developing the technology. Additionally, we will be getting exposure to Bitcoin Mining operations through traditional markets—NYSE, NASDAQ—as well as the *derivatives (Futures) markets for Bitcoin, and soon Ethereum, through the CME and CBOE.
*Swaps, Forwards and Options currently do not exist, but are being developed in the coming months along with ETF’s and other related/leveraged products.
As we’ve been coaching and assisting a handful of other investors as they entered and negotiated the madness of this market, our friends have averaged no less than 300% gains. The investment strategy of the fund will be EXACTLY the same as what we’ve been doing on a personal level. In 2017 we realized a gain of over 1,800%. At a certain point, it just makes more sense to manage one fund, than to attempt to manage a growing group of individuals.
We believe, based on the basic trends in software/Distributed Ledger technology as well as the coming network effects of larger pools of investors, developers, and institutional monies, that the next 24-36 months provide a rare opportunity for those adept at correctly evaluating the different currencies, teams, projects and the Monetary Policy of their underlying digital currencies. Each and every day people are developing more use cases for the various currencies and associated software products.
We feel that it is realistic to expect triple-digit gains in a variety of Digital currencies and projects.
How we got here
Our group of traders/investors started looking at this space in early 2014, dipping our toes in with an early attempt at building a decentralized exchange. During development the Mt. GOX exchange was hacked and the bitcoin price dropped dramatically. We realized that perhaps the risk was too great to justify investment at that point.
We were, of course, proven wrong as the price of Bitcoin and a few other currencies available at the time started to skyrocket in value.
We watched the market closely and began investing in late 2016, and slowly added to position we thought could create value to businesses, with good teams, solving real problems with competent leadership and technical abilities. To evaluate this, I relied on software engineers to take a deep dive into projects that we thought had potential.
Our system of evaluation led us to original investments—no more than $2,500 at a time—into a variety of assets that over the last 12-18 months have risen dramatically in value.
Some of these currencies:
- Bitcoin (BTC)—In at $850, currently trading at $8,200 (+880%)
- Ethereum (ETH)—In at $35, Exited at $700 (+2,000%)
- Ripple (XRP)—in at $0.08, currently trading at $0.25 (+320%)
- Lumens (XLM)—in at $0.006, currently trading at $0.8 (+1,330%)
- NEO—in at $0.98, exited at $62 (+6,326%)
- Cardano (ADA)—in at $0.065, exited at $0.31 (+476%); New Position at $0.043...
- HBAR—(Hedera Hashgraph) in at 340 satoshi (around $0.035)...
- RVN—(Ravencoin) in at $0.0125, exited at $0.097 (+776%)
The list goes on, but you see that the gains dwarf traditional stock market gains, even in the most risk tolerant assets, by many magnitudes. It seems prudent that even the most conservative investment strategy should allocate 5-10% of risk assets in this market. The question then becomes, where are the next winners?
Where we are going
Everyone is a genius in a bull market. But what happens when the bears return?
The cryptocurrency markets experienced an extreme downturn in January of this year, selling off more than 70%. While the nature of that downturn is exceedingly curious—a combination of news on regulation, market spoofing, wash trading, etc.—the result was massive selloffs that had even the most staunched supporters of bitcoin doubting whether there would ever be a recovery. Indeed, the death of bitcoin has been proclaimed a mere 235 times.
The price of bitcoin dropped from a high of around $19,700 to lows around $6,400. Now, for those of us early to the market, it mattered very little, but for the new entrants into the market, it was gut-wrenching. The other coins in the market suffered a similar fate because, up until recently, the Alt-coins (alternative coins) were priced in Bitcoin. When BTC slides, it takes the market down with it.
What kept us from experiencing these dramatic losses was our ability to move back and forth between Fiat (USD) currency and the various digital assets, as well as some positions in the mining space, which allowed us to generate consistent small gains and mitigate much of the selloff.
Now, based on the market’s stabilization around current levels, and the global influences we believe are approaching, we feel that there will be a massive bull run and capital expansion much greater than what happened in 2016 and 2017.
In our opinion, the greatest wealth transfer in human history is about to occur and we want to have the most leverage possible to dedicate to this market. As the past is no predictor of future success, we would not dare to speculate as to the returns that this fund will generate, but we are cautiously optimistic that returns of *300-400% are achievable.
*Obviously, all markets are speculative in nature and one should consider their particular level of risk tolerance before making any investment decisions.
Structure of the Fund ('2 and 25')
The Black Fund is structured as a 2 and 25 Fee structure with a 6% hurdle and high-water mark.
That is to say: a 2% management fee—based on total AUM at the beginning of each fiscal year; a 25% Performance fee—based on the total profit (asset appreciation) generated at the end of the fiscal year; with the Performance fee only being applicable if the minimum 6% hurdle is surpassed, and the previous fiscal year’s closing value (high-water mark) is met or surpassed on years 2 and 3.
There is a lot of opportunity for those that have the stomach for this market. Since most people don’t, we say to you, “let us get the stomach aches and nausea so that you don’t have to.”
The fund will kick off on July 1, 2018, with all initial investments delivered to the fund on or before June 30, 2018.
Additional funds may be placed on or before the last day of the each quarter. Redemptions are authorized (with 30-day notice) at the end of the fiscal year.
Any emergency Redemptions occurring at times other than the end of each year, or without notice shall have a 10% fees assessed, as we may need to unwind futures positions, etc.
Time Period of the Fund (36-Months)
The fund will run for 36-months, at which time we will return to each investor their portion of Fund, paid in either Bitcoin, or USD.
The nature of this market is that it carries a high degree of volatility, which creates equal parts elation and panic. To look out farther than 3 years into the future is an exercise in futility.
The easy money will be made over the next 3 years and were going to take full advantage of it. We hope you’ll join us in this endeavor, but even if you don’t, please take the time to do some serious research in the Digital Currency space… we’re 10 years into this market and no longer does the excuse, “I just don’t think it will exist,” hold any water.
Let's face it, by now, If you manage money, you have a fiduciary responsibility to expose your clients to this market. And as a prudent investor, you have a responsibility to inform yourself of the Digital Currency space and potentially gain some personal exposure.
Positioning 5 - 10% of your assets in the Digital Currency space is a realistic goal for most educated investors. You don't want to be on the sidelines for the coming bull market.
Are you on the Sidelines... or in the Game?
$100 invested in Bitcoin in 2010 ($0.39) would yield you nearly $2,000,000 at today's prices. For the price of decent sushi, you'd be sitting on a couple million dollars.
We're searching for the next coin(s) that are going to have even a tiny fraction of that success... and we're finding them. So ask yourself, where do you want to be 5 years from now?
Did you miss the opportunity in 2010? Are you the person who ignored this incredible, and world changing technology? Want a do-over?
Are you the type of person who takes charge and seizes the opportunities that life hands you?
Well, here it is, your chance to be among the few who actively participate in the greatest wealth transfer in human history.
This is the Black Fund.
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Contact us below for more information on the FUND, or our CONCIERGE/PRIVATE Portfolio Creation Services:
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