February accelerated the decline in the crypto market. Classic Diversified returned +5.13% and Classic Stable +16.58%. Over the same month Bitcoin returned −14.95% and the BITA Crypto 10 index returned −15.41%.
Performance
| February | Year to date | |||
|---|---|---|---|---|
| Gross | Net 25% | Gross | Net 25% | |
| Classic Diversified | +5.13% | +5.13% | +27.98% | +27.98% |
| Classic Stable | +16.58% | +16.58% | +49.12% | +48.38% |
| 12 months | Since 1 January 2024 | ||
|---|---|---|---|
| Gross | Net 25% | Gross | |
| Classic Diversified | +56.79% | +47.53% | +512% |
| Classic Stable | +69.37% | +61.53% | +449% |
Portfolio manager’s comment
Bitcoin returned −14.95% in February, and altcoins fell by up to 20%. Outflows from spot ETFs continued for a third consecutive month, which points to a risk-off market across the board.
Where the return came from
Classic Stable earned most of its +16.58% in the first phase of the sell-off, when volatility and directional moves were strong. The market then settled into a narrow sideways range. Opportunity compressed, and the systems reduced their activity.
Classic Diversified returned +5.13%. The investment team added to its bitcoin collateral during the decline, and the algorithms offset the fall in Bitcoin and preserved capital. If Bitcoin resumes its upward trend, the bitcoin collateral adds a further layer of return on top of the algorithmic return.
Risk filters
After the early-month move was captured, new risk filters were triggered across several models. Position sizes were reduced and trading frequency fell. This helped the strategies avoid giving back profit in the sideways phase.
What the strategies need
The strategies are long and short and adapt to the market. Historically they perform best in a higher-volatility environment.
Since 1 January 2024 Classic Diversified has returned +512% and Classic Stable +449%, with reinvestment and before performance fees. The strategies should be judged over a horizon of two to three years or more, not by a single month.