Issuer: ELEMENT ONE LTD
ISIN Number: VGG299771086
Issue Description: USD CL B SHS
ISO CFI: CICXXX
The start of October '19 was taught, for the first three working days, the S&P 500 declined below 2860 basis points. However, by the end of the trading session on the 3rd of October, bulls out-weighted the overall movement. By the end of the month, S&P500 added impressive 2,04%.
On the 10th of October British Pound exchange rate to US Dollar increased by 1,85 b.p. overnight due to positive news regarding Brexit deal. Though out the month GBP performed a considerable growth with 5,33% hike.
On the 30th of October, the Fed lowered the interest rate by 0,25%. The aligned statement was backed with Federal Open Market Committee data on active Labour market and stable economic activity growth. Unemployment rate maintains on a low level, and movement to 1,5%-1,75% ranges were expected. Dollar index has lost more than 2% slightly by the end of a month
On 31st of October, we have added Bitcoin (BTC) futures contracts to our fund portfolio. We constantly analysing the price changes, as the volatility of underlying assets is higher compared to the volatility of stocks that we are working with. The investment horizon is 1–2 months. The following position has underperformed, due to short-term correction of cryptocurrency market and negatively affected on fund's performance.
Vmware (NYSE: VMW) shares, included in the portfolio at the end of September, have grown by 5,47%. We increased the Stop-Loss for the following security up to $150.
As a result of October, Element ONE pie fund performance was positive and added 1,7% in its price.
Issuer: RAM Data Technologies INVT LTD
CUSIP Number: G7369L 106
ISIN Number: VGG7369L1067
Issue Description: EUR CL C SHS
ISO CFI: CICJMS
During October '19 mining difficulty continued to increase; however, the pace of upward movement has slowed down. Difficulty index for Ethereum almost haven't changed from the beginning of the month, while for Bitcoin it increased to 0,9317Т, which is three times lower comparing to September '19.
It is essential to mention the positive comments regarding stablecoins from government representatives from around the world. The Head of Federal Reserve Bank of Philadelphia, Patric Hacker, said that stablecoins issued by Central Banks is a matter of time. Germany Minister of Finance, Olaf Sholtz was supportive for establishment of digital Euro, while Swiss Central Bank and SIX exchange are looking into the opportunity to issue digital Swiss Franc for enhancement of exchange trade activity.
On top of that, the business field is adopting digital currencies. IKEA becomes the first company in Iceland to accept payment with a help Ethereum smart-contract transaction. The cryptocurrency adoption entering in variety of business sectors, meaning that there is a bright future for this type of assets.
Exchange rates for significant cryptocurrencies have appreciated during October - Bitcoin added +10% in its price, while Ethereum +1%. Nevertheless, the presence of accounting amortisation within the fund structure didn't allow to obtain positive dynamics - the price of fund's stock, including accumulated coupon, has declined by 0,47% compared to the beginning of October. We are full of optimism regarding the end of 2019 and planning to keep positive performance for the year.