MAXIN GLOBAL FUND - USD is a Long / Short Directional hedge Fund incorporated in Luxembourg. It started trading on February,22 2022 and replaces MAXIN ADVISORS' MODEL PORTFOLIO which has been trading since January 1st 2014. At MAXIN ADVISORS, we manage FULLY TRANSPARENTLY and publish the transactions on a DAILY basis and the details of the portfolio on a WEEKLY basis.
MAXIN GLOBAL FUND – USD
Transaction Update
We started the day by taking some trading profits on recent positions in Chinese equities such as SINOTRUK, XIAOMI or XINYI SOLAR as well as in some real estate and tech stocks where we had averaged down at 25 to 30 % lower. As expected, China real estate crisis is bottoming out and investors are back into the sector, buying the solid real estate developers on the cheap.
The US session was more complicated with dislocation signs in the crypto-space that affected the main equity markets. On our crypto positions we were stopped-out and we went short Bitcoins.
After a summer of admirable lack of volatility, the crypto pace got rocked last night by yet another liquidity crisis affecting two of its ,its prominent exchanges. The space is crumbling and volatility seems to be returning with a vengeance.
FTT, the token native to crypto exchange FTX, lost most of its value after rival Binance, the world’s largest cryptocurrency firm, announced plans to acquire the company. The coin traded at around $22 on Monday and sank below $5 Tuesday afternoon in New York. The sell-off wiped out more than $2 billion in value in the space of 24 hours.
Cryptocurrencies as an asset class sank on Tuesday, with bitcoin and ethereum both plunging more than 10%. Shares of crypto exchange Coinbase also experienced a double-digit percentage drop, while Robinhood, which traders use to buy and sell crypto, fell by about 19%.
The deal announcement potentially consolidates the two largest offshore exchanges into one single entity, something that should be taken positively theoretically, but in fact, it reflects a deep liquidity crisis in the space and at FTX. Sam Bankman-Fried FTX firm was valued at $32 billion in a financing round earlier this year.
The tremors are probably not over and could have a severe impact on global markets
In equities, our stop losses on most of our long US equity positions were activated, we closed our AMD, Apple and Microsoft positions at profits, were stoped our of Google, Meta and Solid Power, went short Wal Mart, AMGN after the publication of its results last week, re-instated our short positions in the SP500, Nasdaq and Russell 2000 and went long volatility.
Our roadmap has not changed and we still expect our bear market rally to unfold into the year-end. However the indexes are overbought and the traditional stocks have rebounded way too strongly in October and are clearly overbought now. We expect a pull back into this week and next and the travails in the crypto space could have a negative impact on equities as a whole, so we prefer to be hedged to a certain extent.
New Asset Allocation
DISCLAIMER Maxin Advisors FZ-LLC or www.maxinadvisors.com, is not a registered investment advisor, nor a capital management firm or broker-dealer and does not purport to tell or suggest which securities customers should buy or sell for themselves. Maxin Advisors FZ-LLC operates as a private advisory and research company where we provide consulting services to pension funds, investments funds and family offices. MAXIN ADVISORS FZ-LLC is one of the General Partners of MAXIN GLOBAL FUND - USD,a Luxembourg Incorporated Hedge Fund. Our analyses and conclusions are ours and they only clarify and highlight the investment rationale behind our own investment decisions. The analysts and employees or affiliates of Company may - and usually do - hold positions in the stocks or industries discussed here. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. You understand and acknowledge that there is a very high degree of risk involved in trading securities.  It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns. The indicators, strategies, columns, articles and all other features of Company’s products are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company’s website are for educational purposes only. Such examples are not solicitations of any order to buy or sell securities, commodities, investment products or engage into any kind of trading activities. Accordingly, you should not rely solely on the Information provided in making any investment decision. Rather, you should use the Information provided only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment. By navigating on our website or remaining on our subscription lists, you accept our terms and conditions and discharge us irrevocably from all responsibility.
