Investor Update & Strategic Outlook
Dear Mikos,
I was really flattered by your interest in our fund during our recent conversation. As we discussed, CMFDH II is currently maintaining a strong track record with an Annualized IRR (CAGR) of 56.6% and a Sharpe Ratio of 1.50.
For the past six and a half years, our core focus has been a disciplined crypto derivative strategy—predominantly capturing the basis between spot and futures prices. This approach has allowed us to capitalize on market inefficiencies while remaining structurally hedged. You can find a more detailed write-up of our long-term strategy here: levenstein.net/strategy.
We are looking at new trades every single day, and I wanted to include some of the specific opportunities we touched on during our call. Per our discussion, we will begin preparing a subscription agreement for the $1,000,000 allocation, understanding that you are still investigating and may not have yet received the described distributions.
Current Investment Ideas
1. The Liga Note
Short-term notes leveraging social reputation and localized business strength. In specialized markets, reputation often acts as more effective collateral than traditional legal frameworks.
View Note Details2. Indonesia-USA Coffee Trade
A high-grade commodity play utilizing the arbitrage between Indonesian local sourcing and USA-bound futures. This represents our move into tangible, high-yield trade finance.
View Commodity ThesisVetting & Risk Management
Our performance is defined by what we reject. We analyze a high volume of potential trades daily, many of which are discarded for not meeting our strict face-value viability tests.
CMFDH II Performance Summary
Annualized IRR (CAGR)
Sharpe Ratio
Core Mandate
Realized gains over paper wealth.
I look forward to our next call and the value of having a sounding board for these non-traditional assets. We'll be in touch shortly with the subscription paperwork.
Sincerely,
Nick Levenstein