RISK-MANAGED BITCOIN FUND

Bitcoin has laid the foundation for a potential new asset class. However, most investors have not yet invested as it is perceived as new and unproven, volatile, and highly technical.

Our fund seeks to reduce the volatility of an investment in Bitcoin through a structure that:

• Provides exposure to Bitcoin
• Seeks to reduce volatility of returns by employing qualitative and quantitative risk management techniques
• Handles technical details around trade, transfer, and custody of Bitcoin

Despite increasing publicity in recent years, Bitcoin has yet to gain mass adoption by large traditional financial institutions. However, interest is growing rapidly with Bitcoin being more widely held and liquidity increasing.

Bitcoin remains notoriously volatile compared to traditional asset classes. During its short history, Bitcoin has undergone many significant changes with respect to liquidity, supply schedule, market structure, and regulation. While the underlying trends have had an overall positive effect on the Bitcoin ecosystem, unexpected events in a non-mature market can have an amplifying effect on volatility.

Morgan Creek believes that active management of Bitcoin can produce better results over time than simply holding Bitcoin passively.

The fund is managed by Mark Yusko, Morgan Creek's Chief Investment Officer. 

Mark Yusko is the Founder, CEO and Chief Investment Officer of Morgan Creek Capital Management and the Managing Partner of Morgan Creek Digital. Morgan Creek Capital Management was founded in 2004 and currently manages approximately $1.5 billion in discretionary and non-discretionary assets. Prior to founding Morgan Creek, Mr. Yusko was CIO and Founder of UNC Management Company (UNCMC), the Endowment investment office for the University of North Carolina at Chapel Hill. Before that, he was Senior Investment Director for the University of Notre Dame Investment Office.

Mr. Yusko has been at the forefront of institutional investing throughout his career. An early investor in alternative asset classes at Notre Dame, he brought the Endowment Model of investing to UNC, which contributed to significant performance gains for the endowment. The Endowment Model is a cornerstone philosophy of Morgan Creek, as is the mandate to Invest in Innovation. Mr. Yusko is again at the forefront of institutional investing through Morgan Creek Digital Assets, which was formed in 2018. Morgan Creek Digital is an early stage investor in blockchain technology, digital currency and digital assets.

In nature, simple organisms often prove more robust over a wider range of environments than complex ones. Our approach to trading strategies draws from the same concept. We favor simple strategies that perform well over a range of environments and rely on our process to seek to ensure that correlations are not spurious.

The strategy is generally fully exposed to Bitcoin when several risk-reward metrics suggest a future rise in price. Conversely, exposure is reduced when its indicators suggest a future fall in price.