Closing Coinbase Trade and Transition to Tyger Certificate
Following our recommendation to invest in cryptocurrencies via a long position in Coinbase, we are closing the trade with an impressive +87% return. We are now transitioning to our newly launched Tyger certificate—an absolute return strategy designed to outperform Bitcoin in the medium term while limiting downside risk to a maximum 20% loss.
Why Close Coinbase Now?
Coinbase has reached the upper boundary of its major rising channel and achieved a near 100% extension target from its wave 4 in September. While its quantitative metrics remain strong (EPS grade at 72 and Smart Sentiment grade at 75), the Volume Flow grade at 1 indicates institutional distribution. Given this, we are retaining Coinbase as part of our U.S. core conviction longs but exiting this specific trade.
Why Shift to Tyger?
Now is an opportune time to allocate to an absolute return crypto strategy that benefits from Bitcoin’s continued rise—targeting $110k in 2024 and potentially $225k in 2025—as well as the asset class’s inherent volatility. Tyger was specifically constructed to capitalize on these dynamics.
While it took time to launch Tyger for administrative and compliance reasons, we missed the post-election crypto surge following Trump’s victory, but we managed to invest during Tuesday’s sell-off to 91K (triggered by the Korean market shock) and have already gained nearly +4% to date.
Chart 1: Coinbase has reached the upper band of its rising channel as a first major target
Tyger at a Glance:
Tyger seeks to outperform Bitcoin over a three-year period while carefully managing downside risk. To achieve this, Tyger combines a global long/short approach with an overlay of volatility trading via convexity positions (out-of-the-money options), structured to both protect against and capitalize on significant movements in crypto markets. Capital preservation is central to our approach. We focus on highly liquid assets, including listed futures and options, crypto-linked equities, and the largest cryptocurrencies by market cap and trading volume. All trades are executed through secure, industry-leading platforms. Our experienced team at Stouff Capital has been increased by two headcounts to oversee the strategy, leveraging deep expertise in equity markets, quantitative strategies, technology, and options trading.
- Target returns: +25-35% net per annum over 3-5 years, or outperform Bitcoin over a 3-year period
- Volatility & Max Draw: controlled volatility of 10-20%, with a maximum drawdown of 20%
- Investment Vehicle: Actively Managed Certificate (AMC)
- Currency: USD share class
- Fees: 2% management fee and 20% performance fee
- Liquidity: Daily tradable NAV under a Luxembourg structure
- ISIN: DE000A4A54G6
How to invest in Tyger:
1. Access the Dealing Documents: Download the Information Memorandum and Transaction Sheet from our Fund Portal.
2. Submit to our Custodian & Paying Agent (Baader Bank): Send the Dealing Documents along with your interest in subscribing to Martin Braunschläger at [email protected] and [email protected] (+49 895 1501 865). Your financial representative can also submit the documents on your behalf.
In French:
Comment investir dans Tyger ?
- Téléchargez le Mémorandum d’Information et la Fiche de Transaction en annexe. Ils sont également téléchargeables à l’adresse fundportal/docs
- Transmettez les documents à votre représentant financier, qui pourra faire une demande de souscription à notre Custodian & Agent Payeur (Baader Bank) Martin Braunschläger ([email protected]) et au service desk ([email protected], +49 895 1501 865).
Please contact us if you have any questions or would like to receive additional information. We look forward to welcoming you into Tyger and are excited about the opportunities ahead.