Hoovest Enigma Funds
It has been a rocky start of 2022 for the crypto markets thus far, with big losses, long periods of sideways movement, and a glimpse of hope at the end of March. The war in Ukraine sparking wild sanctions and severe economic anxiety over commodities, turned out to be an ambiguous signal for digital assets, as nobody really knew whether this tumult would be good or bad for cryptocurrencies. However, volumes, and more importantly retail investor activities, have been dampened, and on average, funds lost 16% this year according to the Eureka-Hedge Crypto Fund Index.
In this environment, quantitative trading is at a significant disadvantage. The very end of March, however, we saw significant rises in crypto prices, and our models did quite well to recover some losses. If this level of market excitement continues, we should expect more positive news in the next few months.
Our new evolutionary strategy has begun phase two testing and continues to show great promise. It is a new approach that tends to perform well in times when our Enigma strategy does not, thus making it a good supplemental model. With returns of about 80% in February and March in testing, we expect this low-frequency strategy to roll out at the end of Q2 of 2022.