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This presentation is provided by Digital Asset Research for educational and informational purposes only. By watching this presentation, you acknowledge that the information presented does not constitute legal and/or investment advice and that no attorney-client relationship is established by viewing this presentation. DAR does not make any guarantee or other promise as to any results that may be obtained from using our content. No one should make any investment decision without first consulting his or her own financial advisor and conducting his or her own research and due diligence. To the maximum extent permitted by law, DAR disclaims any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses.
You should consult with an attorney or other professional to determine what may be best for your individual needs.
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• Firm Overview • Asset Classes • Risk Adjusted Returns • Portfolio Construction • Economic Measurements • Participants • Institutional Challenges
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We are a boutique research firm focused on the analysis of digital assets and the digital asset ecosystem for institutional investors.
We provide high quality, objective long form written content and data to hedge funds, family offices, asset managers, and VCs.
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Equity
Public Equity • •
Capitalization Developed or Emerging
Fixed Income
Sovereign Debt •
Developed or Emerging
Muni Debt Private Equity
•
• •
Corp Debt
•
Buyouts Growth Equity Venture Capital
Commodities Metals • •
Precious Industrial
Energy
Rev Source
Livestock • •
IG Debt HY Debt
Agriculture
Real Estate
Currency
Collectibles
Office
Inflation
Art
Healthcare
Interest Rates
Coins
Residential
Deficits/Debts
Stamps
Retail
Trade
Books
Specialty
Political Stability
Cards
Digital Assets 4/17/2018
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Digital Tokens
Equity
Fixed Income
Commodities
Vol
Real Estate
BTC
ETH*
S&P 500
EAFE
EM
BB Ag
IG Corp
HY Corp
EMD
BCom
Gold
VIX
REITs
Avg Return
18.8%
41.7%
1.2%
0.7%
0.5%
0.2%
0.2%
0.4%
0.1%
-1.0%
-0.3%
-5.6%
0.7%
Vol
65.5%
73.1%
2.8%
3.3%
4.3%
0.9%
0.8%
1.6%
2.8%
3.9%
4.7%
15.5%
3.7%
Return
247.9%
1621.7%
14.9%
9.1%
4.8%
2.0%
2.8%
4.9%
0.3%
-11.5%
-4.1%
-57.9%
8.4%
Vol
227.0%
253.3%
9.6%
11.5%
14.9%
3.0%
2.8%
5.7%
9.9%
13.4%
16.2%
53.7%
12.8%
Sharpe
1.07
6.39
1.13
0.45
0.05
(0.66)
(0.42)
0.15
(0.37)
(1.16)
(1.15)
0.35
Monthly
Annualized
Annualized
(0.50)
Source: Digital Asset Research; Indexes: S&PTR, MSCI EAFE, MSCI EM, BBarclay US Agg, BBarclays US Corp Intermediate, BBarclays US Corp HY; BBarclays EM USD Agg; Bloomberg Comm Index; Gold Spot; CBOE VIX; DJ Real Index * Note: 60 monthly observations with the exception of ETH which is 24 months
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Copyright ©2018 DIGITAL ASSET RESEARCH
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Digital Tokens
BTC ETH S&P 500 EAFE EM BB Agg IG Corp HY Corp
Equity
Fixed Income
Commodities
Vol
Real Estate
BTC
ETH*
S&P 500
EAFE
EM
BB Agg
IG Corp
HY Corp
EMD
BCom
Gold
VIX
REITs
1.00
0.18
0.18
0.16
0.05
0.07
0.13
0.16
0.09
0.10
(0.01)
(0.25)
0.06
1.00
(0.09)
0.07
0.09
0.30
0.19
0.01
0.23
(0.21)
0.31
0.12
(0.11)
1.00
0.86
0.74
(0.17)
0.22
0.75
0.52
0.48
0.07
(0.80)
0.65
1.00
0.83
(0.05)
0.34
0.79
0.70
0.53
0.16
(0.76)
0.62
1.00
0.04
0.41
0.75
0.83
0.59
0.33
(0.63)
0.58
1.00
0.81
0.18
0.40
(0.06)
0.38
0.13
0.38
1.00
0.57
0.67
0.24
0.42
(0.22)
0.60
1.00
0.71
0.64
0.29
(0.62)
0.68
1.00
0.58
0.45
(0.44)
0.62
1.00
0.50
(0.33)
0.30
1.00
0.05
0.22
1.00
(0.54)
EMD BCom Gold VIX REITs
1.00
Source: Digital Asset Research; Indexes: S&PTR, MSCI EAFE, MSCI EM, BBarclay US Agg, BBarclays US Corp Intermediate, BBarclays US Corp HY; BBarclays EM USD Agg; Bloomberg Comm Index; Gold Spot; CBOE VIX; DJ Real Index * Note: 60 monthly correlations with the exception of ETH correlations which are 24 months
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Source: Digital Asset Research
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Copyright ©2018 DIGITAL ASSET RESEARCH
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First investors in crypto, reverse of most technological trends
Traditional and crypto specific
Assessing managers or making direct investments
Grappling with structure issues
Threats and opportunities
SEC pushback around applications 4/17/2018
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Safeguarding of private keys for those that self custody
Pooled investment vehicles >$150M AUM required to have a qualified custodian
Possibility of tokens qualifying as securities requires proper licensure for crypto exchanges
Lack of standardization around benchmarks and token valuation
No centralized repository for basic token information 4/17/2018
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info@digitalassetresearch.com www.digitalassetresearch.com
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