OPPORTUNITY FUND

EXECUTIVE SUMMARY Q2 2020

How Did We Fare?

For the 2nd Quarter of 2020, the Fund posted a return of 2.52%, bringing the Since Inception (annualized) return to 8.35%. The capital appreciating allocations to Bespoke A LP and Holt Accelerator were the main contributors to this positive return over the quarter.

Bespoke A LP recorded another strong quarter. Bespoke were the first licensed commercial lender focused on the cannabis industry and continue to benefit from their early establishment. Their ‘first mover’ status has positioned them at the centre of this fast-growing industry, providing access to working capital for an ever-increasing client base.

In the first half of 2020, Holt Accelerator continued to expand its global footprint, living up to its name as Canada’s most active seed fintech investor. Holt accelerator obtained over 700 applications, across 87 countries for its 2020 cohort. With the help of over 125 advisors, the top 8 teams were selected for investment, bringing Holt’s portfolio companies up to 26. With Covid-19 now accelerating the adaption of fintech solutions, the future is bright for the Holt Accelerator and the companies it supports.

For the income generating portion of the fund, the GNMA securities, which were the main contributor to the negative performance over Q1 2020, provided positive attribution in Q2. The cash flow generating nature of these securities and the re-emergence of some market liquidity has helped boost current valuation. While the current historically low interest rates have created a challenging environment for these GNMA securities, the bonds continue to generate positive cashflows and are poised to generate attractive returns as interest rates increase as the economy re-emerges.

Performance Breakdown: Q2 2020

 

Holding Contribution
Bespoke A LP 0.77%
Holt FinTech Accelerator 0.74%
GPG Holding AG 0.34%
CGCMT 2018-C5 XA, 0.760762% 0.30%
Holdun income Fund class a shares 0.18%
Promissory Note Omicrom 10.00% 0.17%
Stradigi AI 10% 05 Nov 2022 0.15%
CFCRE 2017-C8 XA 1.84396% 0.13%
Rokk3r Fuel Bahamas Fund Ltd 0.09%
Factoring Stradigi, 15.00% 0.08%
Accelerate IT VF I -0.12%
Momentum II (Uber) -0.36%

The Structure

As at 30st June 2020

Performance Analysis

As at 30st June 2020

* Since Inception Returns as of the 31st of July 2016.

Trailing Returns (Net) 3-month YTD 3-Yr Since Inception *
Portfolio (2.5%) (5.8%) (5.58%) 8.3%
Benchmark ** (9.2%) (3.4%) (0.51%) 3.5%

**Benchmark is the HFRI Fund Weighted Deposit Fund Index

Fund Outlook

 

The Fund has maintained its proactive approach to ensure that we take full advantage of opportunities as they arise. The recent market volatility has generated widespread market dislocation, presenting investment opportunities across both the Income Generating and Capital Appreciating portions of the Fund. We have currently lined up two investments for the upcoming quarter, a capital appreciation investment in the quantitative trading space and an incomegenerating promissory note.

We4c is a start-up utilising proprietary A.I. and natural language processing to extract social sentiment from twitter. These sentiment indices are then used to trade highly liquid U.S stocks and ETF’s. With a founder of the highest credentials and a back-tested history extending back to 2013, We4c is perfectly positioned to become a formidable force in the quantitative space.

A convertible promissory note has been agreed with Omicrom Development LLC. This structure offers safety of principal and a consistent interest stream through the note structure while providing the option to participate in the capital appreciation of the real estate equity fund. This approach ensures an optimal risk-adjusted return for the Fund.

Capital Appreciation/PE Holdings

HOLDING DESCRIPTION
Stradigi Ai Artificial intelligence solutions for innovative enterprises
leAD Sports Accelerator V.C. Fund, investing in sports focused tech companies
Holt Financial Online platform giving you access to a digital wallet, investments and
security tokens all in one place
Holt Fintech Accelerator Investing in the top 1% of companies globally, and providing support to accelerate their growth to Series A.
Rokk3r Fuel Leading V.C. fund that invests in founders who are building exponential
growth companies
Sway Ventures Invest in high-growth seed and early-stage technology companies
Addepar SPV Performance reporting platform for financial institutions
Bespoke A LP Operates as a leading lender within the cannabis industry
Brannd Wellness Sales platform using technology to adapt to the latest ecommerce trends
Nexus NYC Luxury Members club in the heart of New York City
Uber Ride Sharing services (pre IPO Investment)
Albany Recording Studio Landmark recording studio designed by Justin Timberlake
Giftagram Inc Gift sharing app. simply select the recipient from the contacts in your
phone and clicking send.
White Shark Fintech Algorithm based trading platform, simplifying trading for beginners and
experts alike
Diagram Ventures II LP A venture launchpad building the next generation of global companies
based in Canada

* Information as at 30/09/2019

HOLDUN