Apis Token - ACM Strategy in a fully liquid Asset
The Apis Token, launching in Q2 2018, is tokenizing the returns from Apis Capital's ACM fund to allow US (accredited) and foreign investors to benefit from the profits of the ACM Strategy Fund, as well, without any subscription/redemption restrictions, minimum investment limits or management fees.
ACM Market Neutral Volatility Strategy Fund
The ACM Market Neutral Volatility Strategy Fund, our flagship investment vehicle, allows investors to achieve significant returns, regardless of market direction, while maintaining liquidity and minimizing drawdowns.
The ACM Market Neutral Volatility Strategy Fund trading strategy focuses on broad based indexes, their respective ETFs, their associated options, and derivate volatility products. Its primary strategy is to capture what is known as "time premium" that exists in index options (Equity Risk Premium or "ERP") and volatility futures (Volatility Risk Premium of "VRP"). The result of this strategy is a non-directional fund that is expected to perform regardless of bullish or bearish market conditions. In fact, due to higher premiums captured during periods of market unrest, the fund typically outperforms during bear markets.
The fund has performed effectively in both advancing, declining and flat markets. Monthly returns are available to prospective accredited investors through BarclayHedge.net or HedgeCo.net (both require free registration), or by Contacting Us for an Investment Prospectus.
Please read the full disclaimer in the Private Placement Memorandum for full details on risks and performance.
Awards and Recognition - As of December 2017
- Ranked #4 out of 540 listed funds by 3-year Return
- Ranked #5 Fund by YTD Return (out of 540 listed Funds)
- Ranked #1 of 62 Option Strategy Fund by YTD Return
- Ranked #3 of 197 Overall Hedge Funds between $1MM and $10MM AUM by YTD Return
- Ranked #3 Niche Strategy Fund by 2017 Return
- Ranked #4 Overall Funds 2017 return (Out of 300 Listed funds)
- Preqin Top Performing Hedge Funds in 2017
The fund primarily trades Equity Index Options which are considered "Section 1256" Contracts. As such, even though the fund trades short term, by IRS rule, 60% of the gains are considered long term, resulting in reduced tax liability for investors as compared to traditional actively trading funds that trade stocks or other types of options.
For tax-exempt investors, such as 401k plans, the fund provides other benefits. It does not use “borrowed funds”, therefore none of its gains would be treated as UBTI (Unrelated Business Taxable Income) and would not be taxed. Conversely, most hedge funds, real estate investments, or other investment options for tax-exempt accounts usually use some form of borrowed funds (loans, margin etc.) and therefore subject tax-exempt account owners to taxes they would not otherwise have to pay.
The fund actively manages risk, using a key proprietary trading model which reduces risk when the fund's holdings are subjected to stress while maintaining the income stream from the positions that are held. The risk management strategy has proven to be effective during times of crises, such as August 2015, early 2016 market meltdowns, Brexit, and the tumult before the US election, successfully navigating periods of high volatility and returning consistent profits.
The greatest risk to the fund is a significant, one-time event that would disrupt the financial system and prevent the fund from adjusting its positions to implement its risk management strategy. This would be unlike the 2008 financial crisis, which although significant to most investors, occurred over a period of a year and was actually a profitable period for the fund (in back-tested results). The riskiest event is a one-day catastrophe, and such an event, while certainly possible, is unlikely and would also greatly affect any other financial investments.
The minimum investment is currently $250,000. Smaller investments may be considered on a case by case basis.
Subscription Fee: None (currently)
Management Fee: 2% p.a.
Incentive Fee: 20% of profit above High Water Mark
Apis Capital Management also offers the newer type 1-or-30 Fee Structure. Please contact us for details.
As the fund invests in securities that are publicly traded with very high volumes and high liquidity, our clients' investments in the fund are nearly as liquid as cash. As such, redemption from the fund is typically available on a monthly basis.
This information does not constitute an offering of the Fund. Please request an Offering Memorandum for full details of the Fund. Investments are subject to risk.