| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | 14.05% | - |
Sigil Core returned 14.05% net of fees in Q2 2026, outperforming Bitcoin by 32.92%, driven primarily by large positions in perpetual exchanges Hyperliquid and Lighter. The broader crypto market faced headwinds from DeFi exploits totaling over $500M, including KelpDAO and Drift Protocol hacks, and MicroStrategy's financial stress as it sold Bitcoin to service dividend obligations. Despite challenges, the fund maintains conviction that crypto represents the next evolutionary step of fintech, with infrastructure finally ready for institutional adoption and regulatory landscape improving under current administration. Key positions include perpetual DEXes as a secular perp-ification of finance trend, and Zcash as a privacy play with post-quantum roadmap. The fund is proceeding cautiously in DeFi given elevated exploit risks but sees evolutionary pressure strengthening surviving protocols. Looking forward, the next major adoption wave will likely come from institutions and tech companies rather than retail, driven by matured infrastructure including Solana upgrades, Circle's Arc launch, and Robinhood Chain, alongside expanding pre-IPO perpetual markets that are bringing private market price discovery on-chain.
Crypto infrastructure has matured to institutional-grade readiness while regulatory environment has shifted favorably, positioning the market for the next $1T in capital from financial institutions and tech companies rather than retail users, with perpetual DEXes and privacy-focused assets representing secular opportunities spanning multiple cycles.
The fund expects crypto markets to remain in a slow bleed mode rather than panic, with most sellers already out but recovery requiring positive catalysts to retake narrative. The next major adoption wave will likely come from financial institutions and tech companies rather than retail users, driven by matured infrastructure and improved regulatory environment. DeFi is being forced to transform from move fast and break things to mission-critical infrastructure with formal verifiability. The perp-ification of finance and expansion of pre-IPO markets represent secular trends spanning multiple cycles.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Aug 14 2026 | 2026 Q2 | - | Bitcoin, crypto, cybersecurity, DeFi, institutional adoption, Perpetual DEXes, Pre-IPO Markets, Privacy |
HYPE LIT |
Sigil Core outperformed Bitcoin by 33% in Q2 2026 on concentrated bets in perpetual DEXes Hyperliquid and Lighter, while broader crypto faced DeFi exploits and MicroStrategy selling pressure. Infrastructure has matured to institutional-grade with favorable regulatory shifts positioning crypto for the next $1T from institutions rather than retail. Perpetual DEXes and privacy assets represent secular multi-cycle opportunities despite near-term market challenges. |
| May 22 2026 | 2026 Q1 | LIT | AI, commodities, crypto, DeFi, Geopolitical, risk management, volatility | - | Sigil Core outperformed Bitcoin by 21.56% despite -3.88% Q1 return amid Middle East turmoil. Fund shifting from defensive 40% risk-off positioning to net buyer, deploying into select crypto assets as risks appear priced in. Manager embraces volatility as opportunity rather than risk, expecting bumpy summer with selective crypto outperformance while broader markets bleed. |
| Feb 10 2026 | 2025 Q4 | FWDI | Bitcoin, Blockchain, crypto, De-risking, DeFi, Digital assets, Fintech | FWDI | Sigil Core de-risked 40% of portfolio in Q4 amid crypto market correction, eliminating BTC/ETH exposure while maintaining readiness for redeployment. Despite regulatory tailwinds, structural headwinds including supply overhang and poor tokenomics created unfavorable risk-reward. Fund expects industry consolidation to favor quality projects with real utility, positioning for next growth phase. |
| Nov 3 2025 | 2025 Q3 | AAPL, GOOGL, NVDA, TSLA | earnings, emerging markets, gold, growth, liquidity, rates, small caps, technology | - | Equities surged in Q3 2025 driven by exceptional liquidity dynamics rather than euphoria, with mega-cap technology stocks pushing market concentration to record highs. Emerging markets and gold led global gains while labor market softening prompted Fed rate cuts. Strong momentum may continue into year-end despite stretched valuations and macro uncertainties. |
| Jul 13 2025 | 2025 Q2 | - | AI, Central Banks, equities, fixed income, global, Markets, rates, Trade Policy |
CRCL HOOD COIN MSTR |
Global markets surged in Q3 2025 on AI optimism, Fed rate cuts, and easing trade tensions. US equities delivered best Q3 since 2020 while emerging markets gained double digits. Despite government shutdown risks and stretched valuations, resilient earnings and supportive monetary policy create constructive long-term outlook for diversified portfolios. |
| May 14 2025 | 2025 Q1 | DPLM.L, HARV.HE, LOTB.BR, POOL | Compounding, growth, Quality, Roiic, value | HOOD | The Compounding Tortoise delivered +10.08% year-to-date through a fully invested portfolio focused on sustainable quality compounding. The fund targets companies with high returns on incremental invested capital exceeding 20-25% that can compound at double-digit rates through execution rather than financial engineering. Strong EBITA per share growth of +14.8% underpinned performance despite FX headwinds. |
| Feb 18 2025 | 2024 Q4 | - | adoption, Bitcoin, Crypto Equities, Ethereum, volatility | - | |
| Oct 22 2024 | 2024 Q3 | - | AI Agents, Bitcoin, DeFi, ETFs, institutional adoption | - | |
| Jul 25 2024 | 2024 Q2 | - | Bitcoin, DeFi, liquidity, Prediction Markets, Venture Capital | - | |
| May 9 2024 | 2024 Q1 | - | Crypto ETFs, NFTs, Stablecoins, Token Unlocks, Web3 Gaming | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q2 |
CryptoSigil Core returned 14.05% net of fees in Q2 2026, outperforming BTC by 32.92%. The broader crypto market remains challenging, with Bitcoin trading primarily on MicroStrategy's financial condition and DeFi protocols suffering exploits. Despite headwinds, the fund maintains conviction in crypto as the next evolutionary step of fintech, with infrastructure now ready for institutional adoption and regulatory landscape improving under current administration. |
Bitcoin DeFi Institutional Adoption Regulation Infrastructure |
CybersecurityDeFi suffered major exploits in Q2 including KelpDAO ($292M) and Drift Protocol ($285M), with Lazarus group executing sophisticated attacks combining social engineering and technical work. AI is reshaping cybersecurity, making older DeFi protocols with stale TVL soft targets. The threat of hacks remains elevated, forcing DeFi to transform from move fast and break things to mission-critical financial infrastructure with formal verifiability. |
DeFi Exploits AI Security Formal Verification Lazarus Protocol Security | |
Perpetual DEXesPerpetual DEXes continue to dominate with increasing volume flowing into Real World Assets including stock perpetuals and pre-IPO markets. Hyperliquid and Lighter remain large positions in the portfolio. The perp-ification of finance is viewed as a secular trend spanning multiple cycles, though the fund trimmed some HYPE exposure in the 60s. |
Hyperliquid Lighter RWA Pre-IPO Markets Derivatives | |
PrivacyZcash is one of the larger positions in the long portfolio, representing the closest thing to Bitcoin while offering strong opt-in privacy and a credible roadmap to post-quantum cryptography. Despite a 50% single-day drop in May due to a white-hat discovered bug, the fund held and added to the position. Privacy is returning as a theme as AI expands surveillance capabilities and geopolitical pressures increase incentives to abuse these powers. |
Zcash Zero-Knowledge Post-Quantum Cypherpunk Surveillance | |
Pre-IPO MarketsSpaceX pre-IPO perpetual market on Trade.xyz did $33M volume on day one, with cumulative volume across venues surging past $3.5B. The pre-IPO market's aggregate VWAP was $155 against a $135 IPO price, pricing the largest IPO in history more accurately than underwriters. This validates crypto's 24/7 transparent markets for price discovery, with pre-IPO perps becoming a major new product category. |
SpaceX Trade.xyz Price Discovery Binance Liquidity | |
AIAI is dramatically expanding surveillance toolkit and reshaping cybersecurity broadly, making it easier to find bugs in code. AI capabilities are enabling more sophisticated attacks by state-backed groups. The fund is also watching AI data center build-out financing through projects like USDAI, where DeFi infrastructure finances AI infrastructure at the edges where traditional credit fails. |
Surveillance Cybersecurity Data Centers USDAI Infrastructure Finance | |
Institutional AdoptionThe next major wave of crypto adoption will likely be driven by financial institutions and tech companies rather than retail users. Infrastructure is finally ready for TradFi requirements, with Solana and others materially improved. Regulatory landscape has changed under Trump administration, with ETFs and TradFi-friendly packages making crypto touchable for regulated players. The shift from consumer market to institutional market represents the next $1T in capital. |
Infrastructure Regulation ETFs TradFi Solana | |
| 2026 Q1 |
CryptoFund is deploying excess cash back into select crypto assets after being 40% risk-off at start of 2026. Manager sees many risks as now priced in and risk-reward improving. Crypto volatility viewed as opportunity rather than risk to be managed. |
Bitcoin Altcoins DeFi Blockchain Digital Assets |
GeopoliticalMiddle East conflict re-escalated with Iran blockading Strait of Hormuz, disrupting global supply chains for oil, fertilizers, and industrial materials. Manager watching carefully but not confident in ability to analyze better than experts. |
Iran Middle East Conflict Supply Chain Sanctions | |
CommoditiesCommodity prices spiked due to Iranian blockade of Strait of Hormuz, with oil and natural gas leading volatility. Hyperliquid became dominant price discovery venue for oil over weekends when regular exchanges closed. |
Oil Natural Gas Gold Silver Energy | |
AIAI hype continues to capture headlines and drive markets. Manager expects AI advancements to increase hacking risks in DeFi segments until cybersecurity tooling catches up, posing temporary headwind. |
Artificial Intelligence Machine Learning Cybersecurity Technology | |
| 2025 Q4 |
CryptoManager views crypto as entering a mature phase after the hype cycle, with structural headwinds including supply overhang and incentive misalignment. Despite regulatory tailwinds, the market failed to generate meaningful returns in 2025. The fund de-risked 40% of portfolio and holds 0% BTC/ETH exposure for the first time. |
Digital Assets Bitcoin Ethereum DeFi Blockchain |
Capital MarketsFinancial markets are moving on-chain at an accelerating pace with convergence between DeFi and TradFi. Manager sees this as the birth of 'Fintech 2.0' and is actively deploying capital into this vertical, including high-conviction position in Canton blockchain network. |
Fintech Tokenization DeFi TradFi Blockchain | |
Data PrivacyOn-chain privacy is moving from a niche to a necessary feature. Manager sees dual push for private solutions from both anti-system individuals seeking wealth protection and institutional players who cannot operate on transparent public ledgers. Next cycle will reward protocols offering programmable privacy. |
Privacy Cryptography Institutional Compliance | |
Risk AppetiteManager took defensive positioning by de-risking 40% of portfolio in Q4, moving outside standard 10-30% cash allocation bounds. This represents the most conservative positioning in fund's history, driven by unfavorable risk-reward ratio and structural market headwinds. |
De-risking Cash Defensive Portfolio | |
| 2025 Q3 |
LiquidityStrong underlying demand and robust liquidity supported equity resilience despite seasonal headwinds. Robust ETF inflows, near-record corporate buybacks, and limited selling pressure created Volume Demand exceeding Volume Supply by one of the widest margins since 2021. |
ETF Inflows Buybacks Volume Demand Supply |
EarningsEarnings momentum drove performance in growth stocks and small-caps. Global earnings momentum has stabilized with forward growth trends indicating limited acceleration, while corporate profit growth has slowed alongside weakening labor demand. |
Momentum Growth Profit Forward Acceleration | |
GoldGold led emerging market gains and was among the best-performing assets. Metals and Mining led all industries with a 127% surge in Gold, while Steel and Copper also posted strong advances. |
Metals Mining Surge Advances Performance | |
| 2025 Q2 |
AIContinued enthusiasm for AI drove strong performance in growth stocks and technology sectors during Q3. AI-related themes fueled investor appetite and contributed to the best third quarter performance for major US indices since 2020. |
Technology Growth Innovation Semiconductors Software |
Trade PolicyTrade tensions eased during Q3 as negotiations progressed and retaliatory threats diminished, supporting rotation into international equities. However, President Trump threatened fresh tariffs on China over rare earth export controls, maintaining uncertainty despite market adaptation to higher tariffs. |
Tariffs China International Policy Negotiations | |
RatesCentral bank rate decisions shaped market dynamics with the Fed restarting its cutting cycle in September with a 25bp reduction. The ECB held steady at 2.0% while the Bank of England cut to 4.0% in August, creating divergent monetary policy paths across regions. |
Federal Reserve ECB Bank of England Monetary Policy Easing | |
| 2025 Q1 |
QualityThe manager emphasizes sustainable quality compounding through companies with high returns on incremental invested capital (>20/25%). They focus on businesses that can compound capital at double-digit rates through strong ROIIC rather than financial engineering. The letter discusses what can break quality investment theses, including poor capital allocation and management teams not understanding the ROIIC framework. |
ROIIC Compounding Capital Allocation Value Creation Free Cash Flow |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Aug 14, 2026 | Fund Letters | Sigil Core Fund | HYPE | Hyperliquid | Other | Financial Exchanges & Data | Bull | - | Crypto, Decentralized Exchange, DeFi, growth, Perpetual DEX, Pre-IPO Markets, Real World Assets, Secular Trend, Stock Perpetuals | Login |
| Aug 14, 2026 | Fund Letters | Sigil Core Fund | LIT | Lighter | Other | Financial Exchanges & Data | Bull | - | contrarian, Crypto, Decentralized Exchange, DeFi, growth, Perpetual DEX, Secular Trend | Login |
| Aug 14, 2026 | Fund Letters | Sigil Core Fund | - | Zcash | Other | Systems Software | Bull | - | contrarian, cryptocurrency, Cypherpunk, post-quantum cryptography, Privacy, Store-Of-Value, turnaround, Zero-Knowledge Cryptography | Login |
| Feb 10, 2026 | Fund Letters | Joe | FWDI | Forward Industries, Inc. | Financials | Diversified Financial Services | Bull | NASDAQ | Digital Assets, discount, Mnnav, Solana, Staking, Treasury | Login |
| Jul 13, 2025 | Fund Letters | Joe | CRCL | Circle Internet Group, Inc. | Financials | Financial Exchanges & Data | Bull | New York Stock Exchange | Adoption, Fintech, Payments, Regulation, stablecoins, Treasury | Login |
| Jul 13, 2025 | Fund Letters | Joe | HOOD | Robinhood Markets, Inc. | Financials | Investment Banking & Brokerage | Bull | NASDAQ | Brokerage, Crypto, Derivatives, Execution, growth, Tokenization | Login |
| Jul 13, 2025 | Fund Letters | Joe | COIN | Coinbase Global, Inc. | Financials | Financial Exchanges & Data | Bear | NASDAQ | Competition, Correlation, Exchanges, Execution, Revenue, Volatility | Login |
| Jul 13, 2025 | Fund Letters | Joe | MSTR | Strategy (formerly MicroStrategy Incorporated) | Software | Application Software | Bull | NASDAQ | Bitcoin, Capital markets, Flywheel, leverage, premium, Treasury | Login |
| May 14, 2025 | Fund Letters | Joe | HOOD | Robinhood Markets, Inc. | Financials | Investment Banking & Brokerage | Bull | NASDAQ | Brokerage, Crypto, Integration, Tokenization, Volumes | Login |
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