What We Invest In, and Why
Coinsolation invests through a small set of themes, not a shelf of tickers. For eligible investors it builds regulated access to global developed markets, with one distinctive feature: a material, Board-governed allocation to Bitcoin-linked securities, held to the same institutional standards as everything else in the portfolio. A governed growth strategy, not a crypto play. This article sets out what the fund invests in and the discipline around it, beginning with what you could lose.
The risks come first, so here they are. The value of the fund’s shares can fall, and an investor may not recover the amount originally invested. Equity and fund prices move with markets, sectors, and individual issuers, and they can move sharply. Bitcoin is more volatile still: it has had severe drawdowns before and likely will again, and it is the single largest driver of the fund’s results, in both directions. Bitcoin moved sharply in a single week last month, a move we cover in a separate note. Weeks like that are why the allocation is sized by rule and held within firm limits, not chased. Because the fund’s assets are priced in U.S. dollars, currency movements can affect what a subscription is worth going in and what proceeds are worth coming out. Liquidity can thin in stressed markets. No investment here is protected, and none is guaranteed.
With that stated, here is what the fund invests in. Global growth is the engine: broad exposure to leading developed-market companies, held through regulated, exchange-listed funds, with U.S. markets at the centre and other OECD-listed instruments where they suit eligible non-U.S. investors better. Government bonds and gold provide ballast: neither is there to chase a return, but to steady the portfolio when equities and Bitcoin fall together in a panic. And Bitcoin-linked exposure is the fund's defining feature, the position the rest of the portfolio is built around, reached only through regulated, exchange-listed securities held with an institutional custodian. The fund holds no Bitcoin directly: no crypto exchange, no wallet, no private key held by us or by anyone acting for us.
The point of holding regulated, exchange-listed instruments is that their value is not a matter of our opinion. The fund’s assets are valued at the market close using independent pricing sources; the net asset value is struck by an independent accounting agent, reviewed by the independent administrator, and approved by the Board, under an independent annual audit. You are not asked to accept our estimate of what the portfolio is worth.
The fund is defined as much by what it will not do as by what it holds. No unlisted, illiquid, or unregulated instruments. No short selling. No speculative derivatives, with exchange-traded derivatives used only for hedging or efficient portfolio management. No borrowing to invest beyond a limited, defined amount used mainly for liquidity. These restrictions narrow the range of things that can go wrong. They do not remove all risk, and nothing here is protected or guaranteed.
The limits are how a portfolio is kept from quietly becoming a single bet. The fund spreads its holdings across several instruments and issuers, caps how much can sit in any one of them, and holds the Bitcoin exposure to those same limits. Direct equity held outside the core allocations is kept to a small share. A cash buffer is kept for liquidity, and any breach is corrected within a defined period.
The fund is a Mauritius FSC-regulated Expert Fund, open only to eligible Expert Investors. It is not open to subscriptions today. When it opens, it opens through the offering documents and the fund’s administrator, not through this newsletter, and you will hear it from us directly.
