Internal Review

May 2021 – Teks Alpha NAV Systema Fund

Market Overview

During May cryptocurrencies suffered a notable correction with drawdowns of -50% or more in the most liquid tokens. $500bn wipeout snuffed out speculative excesses that had been building for months. Researchers showed that total margin liquidations totaled roughly $10bn on May 19. Two major news unleashed this sell-off, PBOC comments towards a total ban on cryptos and Tesla no longer accepting bitcoin payments due to climate concerns. BoJ governor also joined critics against bitcoin which detracted a strong rebounce at the end of the month.

Bitcoin market capitalization has dropped from $1.2tn to nearly $650bn while BTC dominance hasn't recovered from current minimums. If this situation prevails in the short term, it is very likely that having a BTC market capitalization representing more than 50% of the market as whole, will belong to the past and we should adapt accordingly.


May was a month where we traded short term contangos and added short put options when BTC broke the $40k level of support.

Henceforward we are going to take advantage of the spike in the options IV and start with a delta neutral trade with Alts and LPs.

Teks Alpha Performance (%)

2021 1.36 0.79 0.75 2.93
Performance is net of fees. Trading operations started on March 12, 2021

Teks Alpha Performance vs Index

Given the nature of Teks Alpha we have chosen as a Benchmark an Index composed 50% by BTC and 50% by cash.

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Legal Disclaimer

The information, analysis, and opinions expressed herein are for general information only and are not intended to provide specific advice or recommendations for any individual or entity. This material is not an offer, solicitation or recommendation to purchase any cryptocurrency, security or to invest in Teks Capital or in Systema Fund PCC. Forecasting represents predictions of market prices and/or volume patterns utilizing varying analytical data. It is not representative of a projection of any market, or of any specific investment. Please remember that all investments carry some level of risk, including the potential loss of principal invested all principal. They do not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns. Please remember that past performance may not be indicative of future results.