After the crypto rally in January, the market continued showing green numbers in February, albeit only for the first half of the month.

In the first two weeks, the crypto market appreciated by an additional 33.8%. During this time, the Solidum Cautus portfolio maintained the same structure from January with over 90% of the portfolio invested in active investments and 10% allocated to stablecoins.

On 15 February, the market experienced its highest yearly market cap level of $309 billion. Thereafter, the correction phase started and the majority of cryptocurrencies began showing red numbers. Over the following two days, the market lost more than 11%.

On 17 February, after the initial drop, the Investment Committee decided to reallocate the majority of the portfolio to stablecoins (90%) and to retain 10% of the portfolio in active investments.

In the second half of the month, the crypto market lost 25.9% and ended February with a nearly stale performance of -0.8%.

By maintaining a more aggressive portfolio structure, we were able to capture the majority of the profits in the first half of the month. Furthermore, by shifting to a more conservative structure on 17 February, the portfolio hedged against the market losses in the second half of the month. These decisions greatly contributed to the overall monthly performance of the portfolio.

The top three performers in the Solidum Cautus portfolio were Tezos (+66.27%), Chainlink (+45.74%) and Ethereum (+22.03%). Chainlink and Ethereum are both among the highest weighted assets in the portfolio, and their performance (along with other assets) greatly contributed to the overall monthly performance of Solidum Cautus in the past month.

Chart 2 (SOCT Best Performers)

Solidum Cautus reported a substantially better performance compared to the crypto market in the past month. It ended the month with a gain of 14.33%, whereas the cryptocurrency market recorded a loss of -0.8%. Additionally, if we compare a funds return to its peers, the average cryptocurrency fund, according to the BarclayHedge cryptocurrency traders index recorded a 2.06% return in February (there are 19 funds included in the index at the time of writing).

Chart 1 (SOCT & Market)
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DISCLAIMER: This article is for informational and discussion purposes only and does not constitute a marketing message, an investment survey, an investment recommendation, or investment advice. The article was prepared exclusively for a better understanding of market dynamics.

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