We are focused on a single fund,
dedicated to our liquid assets.
The Cypanga Sicav Diversified Portfolio
is an Alternative Investment Fund based in Luxembourg.
A renowned custodian, the Pictet Group, has been selected to ensure safekeeping of our assets and provide fund administrative services.
We invest without the constraints of a formal benchmark and work to preserve capital from extreme variations during period of crisis, while increasing our portfolio value well above inflation over time.
Since October 2011, we have produced an average return above 6,0% per year on our liquid class of shares, after all fees and charges. This is well above inflation in Europe.
By restricting our downside risk over any twelve-month period to -5%, we have preserved our capital through very difficult markets; including the European Debt Crisis of 2012, the US-China Trade War of 2018 and the Covid-19 Pandemic of 2020.
A critically important element of our portfolio
is its unconventional asset allocation.
Two reasons lead Cypanga to diversify into non-traditional asset classes.
One one hand, a broader set of opportunities means that the portfolio should be able to produce decent returns in a wider variety of environments.
On the other hand, the multi-asset class approach offers diversification benefits that help control risk.
Exposures can be adjusted in response to mid-term opportunities arising from significant market disequilibria or due to other unusual circumstances.
The figure below depicts Cypanga’s long-term steady-state asset allocation targets in normal market conditions.
A guiding principle of our investment discipline
is to consistently match assets and liabilities.
One drawback of our non-traditional asset allocation is the impact on the overall liquidity.
To ensure the needed visibility to manage the portfolio accordingly, the management team and some anchor investors are committed in a 3-year rolling lock-up.
These positions typically represent a significant part of the assets under management.
The fund also offers a monthly liquidity scheme to some investors, in exchange for a performance-linked liquidity risk premium, to the benefit of the locked shares.