Fund Update - February 2024

Highlighted updates from January-February

January Performance:

January Returns (%): 11.63%

January Returns ($): $4,614,975.48

Total Fund Balance: $40,293,320.51

Total Withdrawals: $11,754,199.99

Total Funds Generated: $29,648,455.46

Platform Fee's Generated: $1,383,633.26

Pro Users: 675

Average User Deposit: $35,505

Average Monthly Return (%): 15.83%

Months Active: 20

Monthly Comments:

In the first 24 days of 2024, global markets have shown mixed trends, reflecting a combination of economic resilience and ongoing uncertainties. Despite high interest rates and potential crises in 2023, the global economy proved robust, with unexpected economic growth in the United States and Europe successfully navigating energy challenges. Some key areas of interest, drawing the market volatility at the beginning of this year include:

  1. Interest Rate Expectations and Market Movements: The expectations around interest rate cuts have had a significant impact on market volatility. In late 2023, markets experienced growth due to the anticipation of rate cuts in 2024, reflected in key investment indices like the S&P 500. However, in early 2024, markets paused and gave up some of December’s gains due to changes in expectations following new economic data on jobs and inflation.

  2. Geopolitical Tensions: Geopolitical developments, such as tensions in the Middle East with potential impacts on oil prices and trade routes, have contributed to market volatility. These uncertainties can lead to swift and significant reactions in global markets, including major indices like the S&P 500.

Overall, market volatility in early 2024 has been influenced by a mix of economic data releases, interest rate expectations, geopolitical tensions, and political uncertainties. These factors have led to fluctuations in major markets and indices like the S&P 500. I don't see large volatility moves this this year outside of the rate reductions likely starting in mid Q2, and the election in Q4. As such, returns are projected to remain within our benchmark projections.

Moore: Blockchain & Digital Assets Gray Fund AUP Completion and Verification of Assets Under Management

We are excited to announce the completion of a comprehensive audit and Agreed Upon Procedures (AUP) for the Gray Fund, conducted by Moore: Blockchain and Digital Assets, a respected tier two audit firm.

This rigorous process has been an important step in our commitment to transparency and due diligence. The enclosed report provides a detailed attestation of our total assets under management (AUM), meticulously verified by Moore with the cooperation of esteemed third parties such as Interactive Brokers and JP Morgan, among others.

Moore's independent verification process included a thorough review of our relationships with key financial providers and an analysis of the security infrastructure within the Gray Market ecosystem. They have examined and verified service agreements and contracts with all our third-party vendors, including Fireblocks, Coincover, Kraken, Bloomberg, Chainalysis, Morgan Stanley, and Stripe.

Furthermore, the integrity and compliance of our third-party providers with international security standards have been affirmed through the collection and examination of their SOC reports.

The audit report outlines the Agreed-Upon Procedures (AUP) for asset balance attestation. Moore conducted the AUP in compliance with ISRS 4400 (Revised) and focused on verifying the total Assets under Management (AUM) as of December 31, 2023. They reviewed the Gray Fund's business model, financial technology applications, and diverse investment strategies in traditional and decentralized finance. The AUM was independently verified through documents provided by Interactive Brokers, JP Morgan, and Morgan Stanley. The report includes findings on security measures and Service Agreements with various third-party service providers. Moore's inspection confirmed asset ownership and reconciled AUM balances with the Public Facing AUM/NAV Report. The report emphasizes the Gray Fund's commitment to transparency and security in investment management. I'd also like to note that a revised report including more verified information will be available shortly, pending legal review.

We believe this report will assist you, our trusted investors, in performing Asset Balance Attestation procedures with confidence.

We appreciate your continued support and trust in the Gray Fund. Our team is dedicated to maintaining the highest standards of security and transparency for the benefit of all our users.

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