'Coin trading gives active crypto fund the edge'

'Coin trading gives active crypto fund the edge'

The manager of the only actively managed Canadian cryptocurrency fund said its “coin trading” can make the most of the space’s volatility.

Cryptocurrencies have endured a tough few months, with Ether and Bitcoin both experiencing drops in value.

But Martin Lalonde, president and portfolio manager at Quebec-based Rivemont Investments, remains confident of another run-up and said he has people waiting on the sidelines ready to invest in the Rivemont Crypto Fund. 

Speaking to WP at the WAIS 2018 Canada summit, he said: “Our timing was not very good because the price of Bitcoin and other cryptocurrency wasn’t nice in the past six months. Our people are really interested, most are still on the sidelines right now seeing what will happen but if we have another run-up, then we have a lot of interested investors.

“We have advisors interested, too, because we got accepted by First Bank on to their platform and we’re working with other banks to make us accessible to their advisors.”

The fund started trading in March and holds about $2.4 million in assets. It trades 10-15 times a months in six cryptocurrencies: Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin and Ripple.

Lalonde said the active element gives the fund a real edge with different currencies having enjoyed surges in value at different times.

He said: “It’s very important – first because those assets are very volatile and the past six months was a good example. We were mostly cash in many periods during that time and we were able to beat the Bitcoin price because of that. So being active is very good.

“Also, not all alt coins have had a run at the same time. Ripple had a good period, Litecoin had a good period; our goal is to be able to invest heavily and substantially in those alt coins when they run on the outside.”

Rivemont also manages private wealth and Lalonde’s cryptocurrency idea was borne out of a personal idea that caught the attention of a client.

He invested in crypto a few years ago with friends and did well, leading the client to tell him that if he could get a fund together, he would seed it with $1-2 million.

He said Rivemont plans to add more coins to the fund when possible and expects crypto funds to become pillars of every portfolio.

He said: “I think every portfolio four or five years from now will have cryptocurrency in it. I think it’s a good non-correlated asset. I view it as the home run part portion of the portfolio. Everyone likes to have 5-10% high risk, high reward and I think cryptocurrencies can bring that.”

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