Blue Magic Capital funds are carefully managed through a professed “Adaptive System” designed by Frank PM, which is based on a combination of fundamental analysis (FA), technical analysis (TA), and most importantly, emotional analysis (EA).
This System has been exclusively optimized and based on highly speculative assets trading, however, it would perfectly suitable in every other investing area. In the end, speculation represents a large part of financial markets. You can read the full system description here.
Blue Magic Capital investment style strives to achieve long term consistent returns. Our endeavour is to obtain nice and positive annual returns rather than focusing on past weekly and monthly performances. Therefore, we forget about past achievements and prefer to focus in long term positive results derived from our Adaptive System.
It is very important to bear the following in mind in mind: VC markets are highly volatile. Therefore, you would be able to see your investments down -20% in just a few days. However, markets are very irrational and unpredictable in the short term so you shouldn’t pay too much attention and worry about short term movements.
Regarding the our offer, Blue Magic Capital will be launching 3 different types of funds: Retirement Fund, Dynamic Fund and Extreme Fund. These Funds are all based on the Blockchain Sector and will only include assets/coins with strong fundamental criteria. The main differences between our three sorts of funds (Retirement, Dynamic and Extreme) will be the methodology applied and the typologies of assets traded. For more information on our selection and classification, please read below:
As its name indicates, the Retirement Fund is designed to be our most conservative fund. The Retirement Fund will base all the investments in A-type and B-type assets, which mainly focus on long-term viable projects (projects with a great support, great resources and big chances of being alive and well in the next 3-5 years).
Retirement Fund will mainly be invested in those projects which “you don’t mind holding onto them for 3 years”. In the meantime, this investment will benefit from a dynamic management which will try to maximize the benefits depending on the market conditions.
To sum up the definition of Retirement Fund in a clear way: “We invest most of our portfolio in the best long term projects, no matter what the current market conditions are. We’re looking through a 2-3 years perspective. We also have a smaller part of our portfolio that is managed actively as dynamic fund is.” – Frank PM
Retirement Fund objective is an annual average of +50% – 100% returns during the whole 10-15 years period.
This sort of Fund is ideal for those investors who are seriously patient and capable of keeping their investments for years. Moreover, this is also the sort of Fund recommended to those willing to invest large amounts of capital.
The Dynamic Fund is an improved and riskier version of the Retirement Fund. It will invest in A-class, B-class and occasionally in some C-class assets. Mostly, our Dynamic Fund will select B-class assets with good growing perspectives based on the following 6-12 months
Although traded assets will coincide with those found in Retirement Funds, Dynamic Fund tries to optimize mid-term opportunities by weighting more the projects with better short & mid-term perspective. For that reason, the asset distribution in the Dynamic Fund will be more concentrated and the performance will be subject to more volatility than in the Retirement Fund.
To sum it up in a clear way: “We invest our portfolio mostly in B-class assets, and occasionally in C-class assets if the market conditions are favorable. Our management is fully dynamic: If for example we have two monitored assets and the first one is expected to grow sooner than the second, we will weight the first asset substantially more than the second in the portfolio”. – Frank PM
The objectives will be annual returns of +200% – 400%, at least during the next 5 years from the date the investment has been made. Obviously, as the sector grows, those returns will be harder and harder to achieve. For now, Dynamic Fund objectives are the ones stated above although they might change subject to sector characteristics.
In other ones, the Dynamic Fund is the one for those who really want to enter in the VC investing game.
It is the most actively managed Fund, and the star of Blue Magic Capital.
Extreme Fund is a special fund designed for risk-loving investors. The main focus is placed on C-class assets (highly speculative assets). Most of C-class assets are used for P&D schemes and the volatility is super high. Nevertheless, there is always a chance to profit from these speculative movements.
To sum up the Extreme Fund: “We invest our portfolio in C-class assets when prices are low. While the prices are too high or the perspectives are negative, we don’t invest, or invest in “safer” assets.” – Frank PM
In terms of Liquidity, this is generally poor and the returns can be very variable from year to year. We are not able to set a specific objective for this type of Fund as the Extreme Fund results will depend too much on the general market conditions. In a good year, returns can easily exceed +500%, however, we can not expect this to happen every year or in a regular basis.
Extreme fund is the one for those “pirates” who love the pure financial speculation game. You will see a lot of market manipulation, mass manipulation and tones of irrationality in the markets where Extreme Funds work. If you want to learn deeply how speculation works, this is the place you have to look.