Bluebottle Alternative Income Fund (BAIF)

Overview Portfolio Terms FAQs

About

The Bluebottle Alternative Income Fund (BAIF) is an investment fund that provides a regular semi annual income by investing in a mix of market-neutral blockchain assets and A-rated Australian deposits, bills, and bonds. The goal of the fund is to produce profits that are not reliant on general market fluctuations by maintaining a balance of long and short positions to ensure the portfolio's net market exposure is close to zero.

+1.3%

PERFORMANCE SINCE INCEPTION

23 July 2024

INCEPTION DATE

Fund Strategy

The investment strategy of the fund is designed to be market-neutral, utilising diversification, derivatives, and leverage to generate a monthly income while prioritising robust security and risk management and taking a long-term investment horizon approach.

Market Neutral Approach

Focuses on income generation rather than capital gain. Maintains a balanced investment profile.

Derivatives and Leverage

Uses derivatives for hedging and enhancing returns and employs leverage selectively to boost potential gains.

Monthly Liquidity

Provides investors with the option to redeem investments monthly, enhancing flexibility.

Diversified Investments

Invests in traditional financial investments which are A-rated and market-neutral blockchain assets.

Security

Invests only in liquid assets and uses secure custody solutions like Fireblocks and Zodia Custody to protect digital assets.

Risk Management

Implements strategies such as arbitrage, basis trading and yield farming to manage and mitigate market risk.

Why JellyC?

An Australian fund manager regulated by ASIC and led by an expert team deploying active portfolio management supported by a strong risk management framework.

Experienced Team across Tradfi & Crypto

JellyC team’s expertise is complemented by a proven track record in managing hedge funds.

Regulated by ASIC, all Australian providers

The BAIF is managed by JellyC, a specialist digital asset investment manager regulated by ASIC.

Diversified Investments

Invests in traditional financial investments which are A-rated and market-neutral blockchain assets.

Active Portfolio Management

The fund has active portfolio management professionally manged to deliver high returns.

BAIF 5 Pillars

1. Arbitrage & Price Making

Seeks profit from market price discrepancies using algorithms, providing a low-risk, steady income.

2. Basis Trading & Yield from Funding Rates

Aims to earn from the price difference between spot and futures markets, generating income through funding rates.

4. Leveraging the Fund Strategies (1 - 3)

Combining arbitrage, basis trading, and yield farming with careful leverage amplifies returns through a synergistic approach.

3. Staking & Yield Farming

Maximises returns from decentralised finance by using hedged staking strategies to manage volatility.

5. Investment in A-Rated Traditional Assets

Investing in A-rated traditional fixed-income products offers portfolio stability and risk mitigation, providing stable, low-risk income.

Portfolio Composition

The portfolio of the BAIF is structured to balance stability and returns through a diversified approach encompassing both digital assets and traditional fixed income securities.

Overview of Terms

Investment Vehicle Australian Unit Trust Investment
Manager JellyC Pty Ltd
Trustee TAF Capital Pty Ltd
Administrator TAF Capital Pty Ltd
Fund Holdings Exposure to the digital market with early-stage investments in companies, protocols & funds, liquid and illiquid coins & tokens.
Investor Eligibility Wholesale Clients
Strategy Market Neutral Fund, producing income paid half yearly
Investment Horizon Short, medium, and long term.
Management Fee 2% calculated monthly
Performance Fee 20% over a high-water mark, calculated quarterly
Exit Fee 5% exit fee for an inter-month redemption. There is no exit fee at the monthly NAV date.
Liquidity Monthly
NAV Calculations Monthly
Redemptions 15 days notice
Minimum Investment AUD $50,000
Minimum Additional Investment AUD $50,000
Distributions Semi-annually

How to Invest

Available for Wholesale or Professional Investors only.

Wholesale clients and sophisticated investors:

'Wholesale clients' and 'sophisticated investors' are defined in the Corporations Act 2001 (Cth) and include a person who has a certificate from a qualified accountant (obtained within the last six months), stating that such person has net assets of at least $2.5 million and/or a gross income for the past two financial years of at least $250,000 a year.

Foreign Investors

The Fund is not available to US Investors.

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FAQs

The BAIF primarily focuses on generating income through a combination of market-neutral blockchain assets and high-quality Australian financial instruments, including deposits, bills, and bonds. The fund's strategy aims to provide steady returns by maintaining a balanced investment approach that is largely independent of broader market movements, offering investors a unique blend of traditional and innovative income-generating assets.
BAIF employs a comprehensive risk management strategy to protect investors' capital. The fund utilizes various techniques such as arbitrage, basis trading, and yield farming to mitigate market risks. Additionally, BAIF ensures liquidity by investing only in liquid assets and uses secure custody solutions to safeguard digital assets. By maintaining a strict risk profile and employing these diverse risk management approaches, the fund aims to provide a stable and secure investment environment for its clients.
The BAIF is exclusively available to wholesale clients. To be eligible for investment, individuals must meet specific financial thresholds as defined by regulatory guidelines to qualify as wholesale clients. These requirements are in place to ensure that investors have the financial sophistication and resources to understand and manage the risks associated with this type of investment product.
Investing in the BAIF requires completing an application online via the Fund’s Information Memorandum and Application Form. The minimum initial investment is AUD $50,000, with the same amount required for additional investments.