Performance overview

Solidum Cautus performed substantially better than the crypto market in November. While the market experienced a negative monthly performance of -16.1%, Solidum Cautus mitigated market losses, ending the month with a mere -1.47% loss in value.

Chart 1 (SOCT & Market)

Following the October rally, the crypto market consolidated for the first three weeks in November. During this time period, Solidum Cautus displayed conflicting signals, as it was unclear whether the market would continue its bullish trend or retract back to lower levels. Nevertheless, the market showed a short-term positive trend. As a result, on 6 November, we initially decreased the allocation of stablecoins in the portfolio from 50% to 10% and increased the allocation of active investments proportionally.

The allocation was subsequently reverted back to its previous structure on 9 November, when the market experienced a decrease of -6.1%. Over the next six days, the market continued to fluctuate between $237 and $246 billion, showing no clear momentum. On 15 November, however, after another daily loss of -2.88%, Solidum Cautus exhibited a third signal, this time increasing the percentage of stablecoins to 90%. After two days, the market experienced a substantial selloff, which lasted till the 25th. The selloff caused the market to decrease by 20%, whereas Solidum Cautus — at the time comprising over 90% of the portfolio in stablecoins — mitigated market losses and experienced a mere 4.39% loss in value. During the last week of November, the market managed to recover some of the previous losses, which is why we decided to increase the allocation of active investments back to 50% on the 27th of November.

Please, read our Monthly Crypto Commentary for greater insight into November’s crypto market.

Altcoins, in general, outperformed Bitcoin in November, marking their third consecutive month to do so. Despite the market downturn, some Altcoins in the Solidum Cautus portfolio recorded remarkable monthly performance, including Tezos (+49.35%), Cosmos (+22,43%) and Cardano (-2.91%). The performance of the aforementioned assets greatly contributed to the monthly performance of Solidum Cautus.

Chart 2 (SOCT Best Performers)

By the end of the month, Solidum Cautus allocated 44.7% of the portfolio to stablecoins and 55.3% to active investments, with the top three active holdings with the largest allocations being Bitcoin (17.5%), Ethereum (11.6%) and Tezos (2.8%).

Portfolio activity

On 6 November, the allocation of stablecoins in the portfolio was reduced from 50% to 10%.

On 9 November, the allocation of stablecoins was reverted back to the initial structure.

On 15 November, the allocation of stablecoins was increased from 50% to 90%.

On 20 November, there was no change to the structure. The Investment Committee decided to add a second stablecoin, USD Coin (USDC), to the portfolio. Up until this point, only TUSD functioned as the stablecoin in the portfolio. However, following the addition of USDC to the ICONOMI platform, we believe having both TUSD and USDC will substantially increase the liquidity of the portfolio.

On 27 November, the allocation of active investments was increased from 10% to 50%.

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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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