Posted on 1st Aug 2020
We already shared a quick view about in our Feed but it's worth highlighting in a bit more detail here: LongShortSignal has officially completed the listing of our very own LSS Token on the promising up and coming platform of Tokenbox. In their own words, Tokenbox is a platform that provides a safe and flexible ecosystem for the trading and managing digital assets. You can look at it as a mutual fund platform for managed crypto portfolios by the likes of ourselves and a number of peers. It offers end investors an avenue to gain exposure to diversified crypto portfolios and we think that our quantitative trading strategy will soon be one of the top performers on there.
Our Tokenbox portfolio is an implementation of our crypto model portfolio, in long only form. What that means is that by investing in the LSS Token (currently going for a price of 20.58), you get exposure to the portfolio that has generated +307% in the first 7 months of 2020. Though with the caveat that given that margin trading and shorting is not (yet) possible on Tokenbox, short positions are turned into cash holdings, and we do need to maintain slightly elevated cash levels in any case to be able to cope with inflows and outflows.
The implication of this is that during periods where the crypto markets turn negative you may perhaps not enjoy the upside of shorting negative momentum, but our quantitative models would most certainly have you out of the market in order to protect your capital. Given that Bitcoin is always going to be a sizeable part of our strategies as the "granddaddy" of all cryptocurrencies, its own performance in the long only and long/short form is a good example of what you may be able to expect from our Tokenbox results. Year-to-date Bitcoin is up +63%. Meanwhile our long only portfolio is up +110%, while our long/short portfolio is up +140%. We think this makes for a pretty solid investment proposition.