Corporate events

Element ONE


Issuer: ELEMENT ONE LTD 
ISIN Number: VGG299771086
Issue Description: USD CL B SHS
ISO CFI: CICXXX

In early July, the U.S. Department of Labor published a strong labor market report for June 2019. Non-farm sector employment grew by 224,000 over the month, hourly average wages rose by 3.1% in annual terms.

On July 10, the SPX index for the first time in history exceeded the mark of 3,000 points in anticipation of a rate reduction.

On July 19, gold futures began to consolidate above the $1,450 per ounce, returning to May 2013 values. The tension of the trade conflict is forcing investors to shift into defensive assets.

On July 31, the Federal Reserve System lowered the rate by 0.25% for the first time since 2008, but Fed Chairman Powell emphasized in his statement that this rate reduction is not the beginning of a new cycle of reduction the cost of borrowed capital.

The Element ONE fund in July showed a negative result - the share price fell 3.07% to $1,496.5. In the middle of the month, we opened a short position on Interactive Brokers (IEX:IBKR) for hedging longs. On July 19, we added a long VMware stock position (NYSE:VMW) to the portfolio, breaking through the moving average (50), which, in our opinion, has every chance to end the year with a result above $195 per share. Unfortunately, half of the securities had to be closed with a stop-loss at a price of $165 per share. However, we are looking at the company's unique decisions with positive eyes and plan to average the position in September.

Mining.VG


Issuer: RAM Data Technologies INVT LTD
CUSIP Number: G7369L 106
ISIN Number: VGG7369L1067
Issue Description: EUR CL C SHS
ISO CFI: CICJMS

In July 2019, bitcoin was not so volatile compared to previous periods - its price ranged from $9,000 to $13,000, only once breaking the upper limit of the specified price range. By the end of the month, BTC fell in price by just over 6% of the month’s opening, ending the month in the region of 10,000 US dollars.

The month turned out to be not the richest in bright events - the regulators' claims to Facebook were mainly discussed regarding their crypto project Libra. A number of local and international companies informed about the start of using BTC to accept payment for services and products, as well as their participation in the creation of exchanges, wallets or cryprtocurrencies. For example, Norwegian Air will sell tickets for bitcoin, Daimler AG (which includes the Mercedes-Benz concern) is developing a cryptocurrency wallet for cars, and Roma, Juventus, PSG football clubs plan to launch their own cryptocurrencies.

In July 2019, Mining.VG, like the cryptocurrency market, showed a negative trend compared to June 2019 - minus 1.53%, taking into account accumulated and paid coupons. In July 2019, the mining fund added the Cuckatoo31 algorithm for 1080ti video cards, which allowed to increase revenue for this type of cards by 10-15% relative to bitcoin. However, the negative trend of the ETHBTC pair did not allow to derive the proper benefit from a partial transition to the specified algorithm. The fact is that a large amount of equipment runs on the ethash algorithm and sells this power for Ethereum mining, getting Bitcoin for it. Thus, with a drop in the cost of Ethereum relative to Bitcoin, the profitability of video cards decreases, in July the decrease in the ETHBTC pair amounted to more than 30%. In addition, in July, the Ethereum mining difficulty increased by 5% from 2.1P to 2.2P, which at constant power yielded a reduction in remuneration. All this was reflected in a decrease in mining remuneration in euro equivalent from 12.8 thousand euros in June to 9.7 thousand euros in July 2019.

At the same time, we see the completion of the corrective movement of cryptocurrencies, which began at the end of June. The fund continues to store major reserves in BTC, which is a stabilizing factor in the medium term.

We also made minor technical improvements on the website and now we display the fund’s yield chart taking into account the accumulated and paid coupons for the convenience of fund’s investors.
RAISON ASSET MANAGEMENT temporarily stops sending monthly newsletter to customers' emails due to the change of service provider as well as the switching to a new scalable service for greater coverage and better fault tolerance compared to the previous provider.

We plan to resume sending monthly newsletter in September 2019. We also invite you to take part in a short poll:

How do you find the newsletter in its current format?


Element ONE


Issuer: ELEMENT ONE LTD
ISIN Number: VGG299771086
Issue Description: USD CL B SHS
ISO CFI: CICXXX

The US market in June showed the best month since February 2019. The S&P500 Index has grown more than 6 percent.

One of the reasons for the rally is a monetary policy easing. The Fed at its meeting on June 19 left the key rate at the current level and hinted at one or even two reductions of the rate in this year.

The day before the Fed meeting, the ECB President Mario Draghi made it clear to markets that the rate cut was one of the tools to stimulate the economy and he could use it.

On June 21 and 27, the Federal Reserve published the results of stress tests of banks and financial institutions, which was conducted in two stages. According to the results of testing, all the largest banks have a sufficient level of capital, allowing them to function in the event of a hypothetical recession. This was another positive sign for stock markets.

Element ONE fund added about 6% in its capitalization for the month mainly due to long positions in stocks.

On June 19, we sold Brookfield Renewable Partners L.P. (NYSE: BEP), receiving a yield of 6.4% in 27 days, profit taking was associated with a possible correction after paying dividends. Protective instruments in the portfolio reduced volatility, but slightly lagged behind the index.

Now we are considering the purchase of a stock of VMware (NYSE: VMW), traded by multipliers below the sector. The company offers unique cloud solutions. In addition, we plan to open a short position in the overvalued, in our opinion, Interactive Brokers company.
 

Mining.VG


Issuer: RAM Data Technologies INVT LTD
CUSIP Number: G7369L 106
ISIN Number: VGG7369L1067
Issue Description: EUR CL C SHS
ISO CFI: CICJMS

In June 2019, bitcoin continued to grow in price - by the end of the month BTC added almost 26% of the price on June 1, closing on June 30 at a mark in the region of 10,700 US dollars. Within the month, the bulls could not overcome the important mark of $14,000 although all the prerequisites for this existed several times came up close to it. Positive news background and important events in June contributed to the continuation of the uptrend. In the middle of the month, Facebook finally announced its Libra cryptocurrency, which gave a powerful signal to the entire market. Even despite the presence of claims from state regulators to Facebook in connection with the specified announcement and correction at the end of the month, the market continues to maintain an optimistic attitude.

We believe that the current correction is short-term in nature, reflecting the rules of the wave theory, and is an omen of the continuation of further growth of the cryptocurrency market.

In the event of the absence of extremely negative events, the price of Bitcoin will most likely test resistance around $14,000 during July-early August and, if it breaks through successfully above the aforementioned mark, it can move to $17500-18000 in the short term. US in the short term.

Mining.VG fund in June 2019 compared with the previous few months showed a slightly worse trend - + 0.02%, taking into account the accrued coupon (-0.68% at book value, in which coupons are reflected in the debt section). This is primarily due to the transition to an advance settlement system for electricity and, as a result, a significant one-time payment in June, which affected the book value of assets. However, the advance payment system will make it possible to slightly reduce the cost of electricity, which in the future should have a positive effect on the fund's profitability.

It is important to note that in the second quarter of 2019, the Fund received income in the form of remuneration for servicing blockchain networks in the amount of about 34 thousand euros, which is 2.7 times more than the revenue for similar activities in the first quarter (about 14 thousand euros). According to the results of the 2nd quarter, the fund's clients received coupons, the size of which was also on average 3 times higher than in the 1st quarter of 2019.

Element ONE


Issuer: ELEMENT ONE LTD
ISIN Number: VGG299771086
Issue Description: USD CL B SHS
ISO CFI: CICXXX

As it was assumed by us at the beginning of May market correction happened. The S&P 500 lost more than 6.5% because of the next round of the trade war between the United States and China. Earlier this month, Donald Trump instructed to increase import duties on goods from China for a total of about $300 billion, which caused fears of rising costs for American companies. The market is in anticipation of the June Fed meeting, which may hint at a reduction of the key rate in the fall. In this case, the S&P 500 may come close to the level of 2950. Donald Trump's desire to reelect in 2020 speaks in favor of a rate cut, and for this to occur he needs a stable increase of indexes. Recall that since the beginning of his presidential term, Trump has criticized the Fed for high rates compared to other countries.

The positions of ALBEMARLE CORP (NYSE: ALB) and Nvidia (NASDAQ: NVDA) were closed at mid-May with stop loss order bringing an average loss of the opening price of 9% each. However, the presence in the portfolio of protective positions such as MCDonald’s (NYSE: MCD), Coca-cola (NYSE: KO), American Electric Power (NYSE: AEP), Schwab U.S. REIT ETF (NYSE: SCHH) reduced the funds losses.

While high uncertainty prevails on the US market, we are taking a neat approach to trading and use low-volatility instruments, including dividend stocks from the Utilities sector, which have a stable cash flow.

One of these purchases we published on the portal invest-idei.ru. Shares of Brookfield Renewable Partners L.P. (NYSE: BEP) have significant dividend yield. In addition, BEP generates electricity from renewable energy sources, which has a positive effect on the value of shares during the period of expensive oil. Currently, the company's shares are trading at +4% of the purchase price, the stop loss has been moved to the level of $32.5.

The NAV of Element ONE for the month fell by about 2%, which is generally the result of 2 times better than the wide market had. We are considering buying Interactive Brokers stocks (IEX: IBKR). In May 2019, the company showed a 15% increase in the average daily income from transactions compared to April 2019. We believe that the company's shares are in a consolidation phase and are ready for a new upward movement.
 

Mining.VG


Issuer: RAM Data Technologies INVT LTD
CUSIP Number: G7369L 106
ISIN Number: VGG7369L1067
Issue Description: EUR CL C SHS
ISO CFI: CICJMS

The sequent month ended with an increase in the cost of cryptocurrency. For the fourth month, Bitcoin adds to its value - its price as of the end of the day on May 31 was about $8,550, which reflects more than 62% of the increase to the closing price of April 2019. In the beginning of May, we assumed that, depending on the breakthrough of an important psychological level of $6,000 and the fixing of BTC above this mark, it would be possible to observe a new long growth cycle. In the short terms, based on technical analysis, we continue to expect Bitcoin growth to the level of $8,800–9,000, with possible repeated corrections in a small range from this level.

In May, there were lots of positive informational occasions from classical participants of the investment market which are expanding their operations into cryptocurrency This served as a strong signal to support BTC value and assisted with further growth.

For example, the company Crescent Crypto Index Services LLC submitted to the US Securities and Exchange Commission a request to launch cryptocurrency ETFs on the NYSE Arca exchange.

On May 13, a new record in terms of Bitcoin futures was set on the CME stock exchange in Chicago. Investors acquired 33,677 contracts, up almost 50% from the last record of 22,500 futures, which was recorded on April 4. Total sales on this day amounted to more than $ 1 billion.

A well-known platform Bakkt from the NYSE announced the launch of testing Bitcoin-futures in the summer of this year.

The Mining.VG Fund, in direct correlation with the cost of cryptocurrency, continues to bring investment income to its customers - in May 2019, the total yield, taking into account the accrued coupon, amounted to about 1% from the previous month (+0.55% excluding the coupon).

Currently, the Mining.VG fund is an attractive investment idea with a projected yield of about 20-25% per annum in euros without the risk of significant drawdown which is inherent to direct investments in cryptocurrency.
Private companies and investors of all scales are looking for new ways of cooperation. Now, anyone can own economic interest in the world-famous SpaceX, thanks to Ambisafe and RAISON.AI.

RAISON.AI and Ambisafe in collaboration with US Capital Global Bank launch the first large-scale sale of SpaceX shares using the DLT technology. These shares cannot be purchased on the public market, however, they are available via tokenized USPX securities.

«By using the blockchain technology and proper legal structures we have created the first legally compliant infrastructure for economic interest in large private tech companies. Pre-IPO tokens are a brand new type of assets that democratises financial markets.»

Andrey Berezin, Raison’s Global Head of Investment Strategies, explains what changes are introduced to the micro-investments landscape. «We are very excited to be partnering with Ambisafe to bring the first pre-IPO security token to the market,» Andrey says. «Everyone has heard of companies like SpaceX and many would love the opportunity to invest. However, because of the nature of private equity, few people are able and willing to spend the time, effort and money required to make these types of investments.»

Raison’s token-based innovation has already attracted numerous investors throughout Europe.

«Employing the blockchain as a ledger for their fund, Ambisafe has created efficiencies that allow us to sell fractionalized economic interest with a minimum investment of $100 or less,» Berezin continues. «This means that small investors around the globe will now have an opportunity to invest in the companies they love most from SpaceX and Reddit to Airbnb.»

Large investors have the opportunity to purchase smart contracts through the Global Technologies Private Portfolio fund without management fees. This service is available through investment company RAISON Asset Management with a minimum check of $50,000.
Personal manager

Please provide us with your contact details by clicking the button below and our manager will revert to you shortly to answer all your questions.


Corporate events