Why 31.431% Compound Interest in a Crypto Hedge Fund is a Big Deal
Bitcoin hedge funds such as the Templar Fund disclose all their trade transactions through publicly available trade reports. Trade reports about return on equity (ROE) are made available every 10 days as well as on a monthly basis (30 days). The Templar Fund also releases an update on its compounded total earnings from the beginning of the annual trade cycle up to its most recent fund performance.
Although most beginner traders overlook this figure as they tend to focus more on the 30-day ROE, the percentage of compound interest is critically significant.
What is Compound Interest?
You may have heard of compound interest from your elementary Math teacher. More likely than not, you’ve learned about it under the conditions of paying off loans.
In the world of trading and hedge funds, compound interest means the same—the sum of the previous interest in a specified time frame. The only difference is, when it comes to investments, compound interest is your ally.
How Compound Interest Works for Hedge Fund Clients
Typically, in hedge funds, compound interest is calculated every month’s end of the trade cycle. The interest from recent fund performance is added to the trade balance. Most hedge funds reset their compounding interest annually, but the Templar Fund does not do this. And usually, as the annual trade cycle closes, investor clients of hedge funds get more than 20% profit at a bare minimum, from their initial investment as compound interest adds up.
Cryptocurrency hedge funds take care of your crypto investments without requiring any effort from you. And if you re-invest your principle and interest, they combine them together to make your investment balance in the next cycle larger than the principle you paid in. This creates greater trade profit in every trade cycle, increasing the overall value of your trading account. With compound interest your investment and profit accumulate—possibly doubling your initial investment in the long run.
What Compound Interest Means for the Templar Fund
In the recent completion of the fifth trade cycle (of 12 total cylces), the Templar Fund has earned 31.431% compound interest. Based on public trade reports, this compound interest figure puts the fund in the top 0.5% of hedge funds worldwide. Investment professionals foresee that Templar Fund annual ROE will be near the 80% mark--or even better--as it closes its annual trade cycle this year. This just proves the expertise of Templar Fund’s fund managers and the power of its fully-automated trading desk to make a profit.
So if you're looking into making passive income with a minimal initial deposit to fund your account, we suggest to put your money in the Templar Fund and let our highly-experienced traders earn money for you.