A Brief History of Sigil Stable Fund
Sigil launched its Stable market neutral Fund in 2021, but unlike traditional fund launches, we did not market it broadly. Instead, we focused on validating our premise and testing the fund under real-world conditions. The majority of capital under management came from our partners and owners, with additional contributions from a few close friends and long-term clients. While we concentrated our efforts on our flagship strategy, Sigil Core, the Stable Fund quietly proved its resilience and effectiveness.
Proven Strategy, Battle-Tested Performance
After years of testing and validation, we now believe this is the perfect time to open our second fund to external investors. Sigil Stable has shown its reliability, particularly during turbulent times.
Here are key parameters:
- USD-Denominated: Providing stability and broad accessibility.
- Low Volatility: Designed to withstand market fluctuations.
- Daily Liquidity: Ensuring flexibility for investors.
- Fee Structure: Same 2/20 model as Sigil Core, with no switching costs between the two funds.
Sigil Stable net performance in USD:
When we launched in 2021, we set net performance expectations in the range of 15–30% per annum. While no fund is immune to drawdowns, Sigil Stable has demonstrated remarkable resilience. For example, during the crypto winter of 2022 — a year marked by catastrophic events like the Terra Luna collapse, Celsius Network bankruptcy, 3AC implosion, and FTX collapse — Bitcoin fell by 64%, and many funds recorded losses of up to 92%. Some didn’t survive at all.
Despite these extraordinary challenges, Sigil Stable fulfilled its role and closed 2022 with only a minor loss of 3.56%. This resilience highlights its effectiveness as a stable, market-neutral strategy, even in the harshest conditions.
Comparing Sigil Stable to Traditional Asset Classes
In 2022, traditional asset classes also suffered significant declines:
- The S&P 500 dropped by -18.1%, marking its worst year since 2008.
- Bonds, typically considered a safe haven, were down -13%, as reflected by the Bloomberg U.S. Aggregate Bond Index, its worst performance since 1976.
Sigil Stable not only outperformed these benchmarks but also offered better downside protection, reinforcing its role as a reliable hedge.
Performance in 2024: Outpacing the Market
In contrast, 2024 was a banner year for equities, yet Sigil Stable continued to shine. While the S&P 500 gained approximately 25% (dividends included), Sigil Stable achieved an exceptional net return of 35.12% with minimal volatility. The bond market rebounded with a modest gain of 1.4%, but once again, Sigil Stable delivered superior results, solidifying its position as a dependable and high-performing option for investors.
Why Open Sigil Stable to External Investors Now?
Several factors have driven our decision:
1. Proven Track Record:
Sigil Stable is battle-tested and has a sufficient track record to instill confidence in new investors.
2. Expanding Market Opportunities:
We see more opportunities in the market than we can currently pursue with existing capital. Private market-neutral deals, often with higher entry thresholds and inaccessible to the general public, now account for over 50% of our portfolio allocation, with potential for even greater weighting. For example, we recently executed a private deal that lasted one month and yielded a 65% net APR. After carefully evaluating all parameters and potential tail events, we made the decision to allocate 15% of our portfolio to this trade, underscoring our conviction in the strategy.
3. Strategic Crypto Risk Management:
Allocating a portion of a long crypto portfolio to Sigil Stable is a rational strategy for de-risking. Some of our Sigil Core investors have already taken advantage of this approach, allowing them to protect crypto gains while staying within the ecosystem without converting to fiat.
4. Enhanced Team Expertise:
Sigil Stable is managed by Jozef, a crypto veteran since 2012, who collaborates closely with Fiskantes and the research team. Jozef brings unparalleled expertise to the fund. Jozef has joined forces with our new team member Peter, ex-CEO of an e-commerce startup, which was successfully exited. Peter brings strategic insights and ensures smooth operations and scalable growth for the fund.
Who Should Invest in Sigil Stable?
The following groups could benefit from joining Sigil Stable:
1. Crypto Natives
- Ideal for those looking to diversify within crypto, book profits, and stay in the ecosystem. Sigil Stable offers approximately double the returns of passive crypto strategies and can enhance returns for those who actively farm in DeFi but lack a full-time operational team.
- Additionally, Sigil Stable acts as an excellent hedge against market volatility and downturns. During bear markets, it holds its value, providing a safe harbor while other assets may experience significant losses. This stability ensures that investors can weather crypto winters without having to exit the ecosystem.
2. High-Net-Worth Individuals (HNWIs):
- Offers stability, low correlation to traditional assets, and a currency hedge for non-USD natives. It’s a great addition to a balanced, diversified portfolio, acting as a savings-like account or a bucket for future investments.
3. “TradFi” Institutions:
- As crypto gains wider acceptance, traditional financial institutions are increasingly opening up to this asset class. Milestones like the approval of Bitcoin ETFs signify the merging of crypto with traditional finance (TradFi), making it a standard part of modern investment portfolios.
- Sigil Stable offers a conservative strategy that aligns well with capital protection objectives. It has been effectively used by VC firms to park funds between raising and deploying capital. Fund-of-funds managers leverage it for reliable returns and risk management. Additionally, family offices can benefit from its low volatility and consistent performance, making it an ideal solution for wealth preservation and growth.
Regulated and Audited for Transparency
Sigil Stable is a regulated and audited fund, ensuring the highest levels of transparency and security for our investors.
How to Join Sigil Stable Fund
For more information or to begin investing, contact us at stable@sigilfund.com or visit the Sigil Stable page and apply online.