Portfolio Breakdown

What, where, how and when funds will be utilized and invested as part of the KXCO Ecosystem

Our investment teams seek to achieve attractive risk adjusted performance by recognizing market inefficiencies and undervalued investment opportunities, while maintaining a focus on risk management and capital preservation. A multi-tiered, iterative risk management system, comprised of internal and external risk management, is designed to navigate through various market cycles. Investment teams have direct access to Senior Management in order to facilitate fluid decision making in rapidly changing markets.

Liquidity Ratios

A failure to adequately monitor and control liquidity risk led a number of financial firms into difficulty in 2007, and the years that followed, and was a major cause of the Great Financial Crisis and has of late seen many other large firms in the Blockchain space suffer catastrophic collapse.

Liquidity is key.

Following the Basel Guidelines on Liquidity

The LCR is designed to ensure that banks hold a sufficient reserve of high-quality liquid assets (HQLA) to allow them to survive a period of significant liquidity stress lasting 30 calendar days. The supervisory scenario capturing the period of stress combines elements of bank-specific liquidity and market-wide stress and includes many of the shocks experienced between 2007 and 2012. The 30-calendar-day stress period is the minimum period deemed necessary for corrective action to be taken by the bank's management or by supervisors.

The LCR requires internationally active banks to hold a stock of HQLA at least as large as expected total net cash outflows over the stress period, as summarised in the following formula:

While adhering to the Basel Guidelines we differ somewhat on what we consider HQLA, we have for decades now seen Governments print money at an astounding rate, this raises questions about Currency Valuations, the ability for some Countries to service Debt and potential for Governments to continue down the money printing path, our definition of HQLA extends to leading Regional Banks and Publicly Traded Corporates, Commodities from time to time, some segments of the Real Estate Market, No Cryptocurrencies, No Private Equity and certainly not our own Tokens.

The amount invested in our HQLA will be at a minimum 150%.

As we have significant exposure to the Cryptocurrency space already we do not see that class of asset featuring in our short term or long term positions but rather as a market we are actively trading.