Fund Update - June 2024

Highlighted updates from May-June

Happy 2 YEAR Gray Fund anniversary to all of our users!! — thank you all for being with us over this time. We look forward to what the next two years!

May Performance:

May Returns (%): 11.94%

May Returns ($): $6,591,693.42

Total Fund Balance: $61,798,438.94

Total Withdrawals: $28,202,021.38

Total Deposits: $36,380,181.27

Total Funds Generated: $53,769,061.27

Platform Fee's Generated: $3,330,480.41

Pro Users: 876

Average User Deposit: $36,596.48

Average Monthly Return (%): 15.27%

Months Active: 24



Market Insights: May 2024 Overview

In May, the U.S. stock market experienced some fluctuations after a robust start to the year. Large-cap stocks demonstrated strong resilience, navigating the high-interest-rate environment effectively, while smaller companies faced headwinds due to their rate sensitivity.

Looking ahead, we expect economic growth to slow, with potential recession risks by mid-2025. The Federal Reserve's likely continuation of higher interest rates will impact various asset classes, keeping non-yielding assets (like gold, and hard assets) subdued but presenting attractive opportunities in fixed-income, credit, debt and high-quality equities investments.

Our Strategy and Actions

Over the past month, we capitalized on the market conditions by focusing on high-quality, large-cap stocks with strong balance sheets, and outlook - which have proven more resilient amidst higher rates. Additionally, we extended our debt and fixed-income portfolio duration to lock in attractive yields, positioning ourselves to benefit from a potential future Fed pivot.

We also diversified into alternatives to manage risk and enhance returns. This included increasing our exposure to market moving volatility driven positions, which have performed well in the current high-rate environment. By maintaining a diversified portfolio and focusing on quality assets, we are well-positioned to navigate the ongoing market uncertainties and capitalize on emerging opportunities.


What’s New?

Refreshed Interface:

Modern Design: The new interface boasts a sleek, modern design that enhances usability and provides a more intuitive user experience. Unified Layout: Consistent design elements across the Gray Fund, Crypto Fund, and Venture Fund ensure that users can navigate effortlessly between different products. Enhanced Performance Tracking: Improved charts and data visualization tools make it easier to track performance and returns. With more data.

Transfer Function:

Seamless Transfers: You can now transfer funds between the Gray Fund, Venture Fund, and Crypto Fund without incurring fees. This feature allows you to manage your investments more flexibly. The transfer periods depend on the individual fund parameters (ie., funds can be moved from Gray Fund to Crypto Fund, only between the set dates used for deposits and withdrawals).

Backend Improvements: Our backend updates have streamlined the process for moving funds between wallets, including both partial and full transfers. This enhancement simplifies user support requests and improves overall service efficiency. Please note, authentication is still required for these transfers.

Interface Enhancements:

User-Friendly Design: The redesigned pages are crafted to be transparent and informative, ensuring you have all the necessary information at your fingertips. Report Functionality: We have refreshed the report function to ensure accuracy. Users can now select reports by month, aiding in tax preparation and personal financial tracking.

Upcoming Features:

Integrated Fund Pages: Soon, all managed fund pages will adopt the new user interface, creating a consistent experience across the platform. More details will follow in the upcoming update later today.


Battle Tested

We are pleased to inform you that all pending withdrawals have been successfully processed as of June 6th. This month, we processed a total of $14,287,932.43 in withdrawals, surpassing the total deposits on the platform by $3.7 million . This total is inclusive of the seed raise that ended on the 15th of last month. Approximately $8.4 million was processed via on-chain transactions, with the remainder through wire (fiat) transfers. It is important to note that wire transfer withdrawals are only permitted for users who have previously submitted a deposit via wire transfer and if the amount is above $100,000. These withdrawals can only be processed to the same entity or individual that sent the original deposit and require KYC.

This month saw roughly 25% of Assets Under Management (AUM) withdrawn from the Gray Fund. This now allows for additional months of compound time for those still in the fund before the hard cap is reached. To better manage expectations and reduce pressure on closing out positions, we are returning to a flexible 1-5 day withdrawal cycle after the close of the month. Users withdrawing more than $100,000 are required to notify us via ticket or email (support@graydigital.com) to allow our team to prepare accordingly. This month, many users did not notify us in advance, leading to processing delays.

For context on these delays: On Friday the 31st, Kraken paused wire transfers to change or add a new bank to their platform, which caused a temporary delay in processing withdrawals. More details can be found here.

Withdrawals above $100,000 require two-step authentication as per our insurance policy with Coincover. This measure is in place to protect our users and ensure compliance. Our insurance only covers non two-step authenticated transactions under $100,000. Notifying our team in advance helps expedite the process. For more information or to confirm these policies, please visit our Trust Center, where you can request and download relevant documents for your own due diligence.

We will be adding additional documentation to the Trust Center, including the Q1 Audit provided by Moore, pending validation and compliance checks. Thank you for your continued trust and cooperation.

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