Bluebottle Market Neutral Fund

Overview Portfolio Terms FAQs

About

The Bluebottle Market Neutral Fund is an investment fund that generates income by investing in a mix of market-neutral blockchain strategies and tokenised deposits, money market funds, bills, and bonds.

22.47%

2 YEAR RETURN

1 March 2025

INCEPTION DATE

Why Invest?

Experienced Leadership

A highly knowledgeable team.

Performance Target

Bluebottle Market Neutral Fund aims for a targeted return of 12% per annum.

Secure Custody

Institutional-grade asset protection.

Stability

Daily liquidity for seamless entry and exit.

Access

Available through market-leading wealth management platforms.

Proven Track Record

2 years of audited performance history.

Efficient Structure

USD Cayman Fund with AUD Unit Trust.

Regulated Management

Managed by a licensed asset manager.

Fund Strategy

The fund's strategy aims to produce profits that are not reliant on general market fluctuations by maintaining a balance of long and short positions, ensuring that the portfolio's net market exposure is close to zero.

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.

Daily Liquidity

Provides investors with the option to redeem investments daily, 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.

BMNF 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 tokenised deposits, money market funds, bills & bonds

Investing in high-quality tokenized deposits, money market funds, bills and bonds, as well as yield-bearing stablecoins, offers portfolio stability and risk mitigation, providing a stable, low-risk income.

Portfolio Composition

The portfolio of the BMN is structured to balance stability and returns through a diversified approach. It includes exposure to Digital Assets - market-neutral blockchain strategies such as basis trading, funding, arbitrage and price making; and Real World Assets (RWA) - investing in tokenised deposits, money market funds, bills and bonds.

Basis Return vs. Strategy Return

Monthly Returns & Annual Returns

  1. These are back tested returns

  2. Returns are without leverage

  3. Returns do not utilise funding rates which could add significant value

  4. Returns displayed are net of fees and allow for custodial margins

Overview of Terms

Bluebottle Market Neutral Cayman (BMNC) Bluebottle Market Neutral Australia (BMNA)
Investment Vehicle Cayman Islands exempted company with limited liability Australian Unit Trust
Manager Trovio Asset Management JellyC Pty Ltd
Administrator NAV Funds NAV Funds
Fund Holdings Exposure to market-neutral blockchain strategies & tokenised deposits, money market funds, bills, bonds. Exposure to market-neutral blockchain strategies & tokenised deposits, money market funds, bills, bonds.
Investor Eligibility Wholesale Clients Wholesale Clients
Strategy Market Neutral Fund, producing income which compounds back into the Fund Market Neutral Fund, producing income paid half yearly
Investment Horizon Short, medium, and long term. Short, medium, and long term.
Management Fee 1.25% calculated monthly 1.25% calculated monthly
Performance Fee 10% over the benchmark (Fed fund cash rate) calculated monthly 10% over the benchmark (RBA cash rate) calculated monthly
Liquidity Daily Daily
NAV Calculations Daily Daily
Redemptions Daily (T+1 settlement) Daily (T+1 settlement)
Minimum Investment US $100,000 AU $50,000
Minimum Additional Investment US $50,000 AU $50,000
Distributions Not applicable Semi-annually

How to Invest

Available for Wholesale or Professional Investors only.

FAQs

The investment focus of the Bluebottle Market Neutral Fund is on generating income through a combination of market-neutral blockchain strategies and various fixed-income instruments, including tokenised deposits, money market funds, bills, and bonds. The fund aims to achieve profitability that is independent of general market fluctuations by maintaining a balanced approach of long and short positions, which helps keep the portfolio's net market exposure close to zero. This strategy is designed to allow the fund to compound the income generated back into the fund effectively.
The Bluebottle Market Neutral Fund 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, BMNF 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 Bluebottle Market Neutral Fund 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 Bluebottle Market Neutral Fund requires completing an application online via the Fund’s Information Memorandum and Application Form. The minimum initial investment is US $50,000, with the same amount required for additional investments.