Delta neutral applicant Logan trying to obtain info from Proxima Bernie (Former Employer)

Source: Notion | Last edited: 2023-01-11 | ID: 2ebe9291-4b1...

Logan: Hey Bernie, hope the start to the new year is doing you good. I am applying for a role where Proxima is unknown to them and requires historical returns being verified by an auditor. Seeing as the entity is deprecated and no longer audited by Spicer Jeffries, what’s the best approach to do so? Is there any material you could send over to verify past performance of Proxima? Thanks

Proxima: There are a few things here:

audited returns are not the same as audited accounts. The fund will be audited sometime in 2023 but it won’t include an audit of the net returns to an investor like a VAMI or tear sheet, just the financial accounts as far as l’m aware. 2) Proxima is not just the Bermuda fund. There is history from the AU fund. Neither the financials or the returns will be audited for this fund. 3) in addition to the tear sheet, we can send a “lead series” statement from the administrator, showing the monthly returns, but this is only for Bermuda fund since Feb 22 and still not audited. This is a moot point, having just spoken to AD. We wouldn’t be allowed to release the audit report to a non investor.

Logan: Thanks for the clarification - what do you suggest is the best way forward? I’m happy to receive a lead series from the admin, as well as a letter of confirmation from the auditor confirming “pending audit

Proxima: A letter from the auditor is a bit complicated. After FTX, the auditor we had has pulled out. We are looking for another. It is mandatory for a Bermuda fund to be audited, so if they know that they shouldn’t need a letter regarding a pending audit. This is quite surprising. We had investors investing millions without demanding an audited track record. I’m amazed an employer is doing this. I would say to them:

The first audit is due sometime this year. If they demand proof, then you can address that later.
You can state that the fund had an independent external administrator (NAV Fund Services) and they act for many other funds.
You can then show them the lead series statements from the administrator (but again that is not the full history)
The Tear Sheet is still the best material to show the returns because it is an official document from the manager of the fund, sent to investors.

Logan supplements info

Annual Sharpe (Monthly Data): 4.2 Correlation with BTC: -0.14 Correlation with S&P 500: 0.45 Start date March 2021. All performance figures in this document are net of all fees.

Logan: The first year we were solely running Delta neutral basis arb strategies solely on centralized exchanges. Starting the beginning of March there was a Defi Desk opened that had nothing to do with our delta neutral desk. That drawdown displays the nomad moonbeam exposure on the defi desk. There is no moonbeam perp that we would be able to conduct delta neutral strategies on. That is why that drawdown is present. Verified with Proxima - The specific exposure on the defi desk was Cashio.io, not Moonbeam but partial funds were returned. Sorry for the confusion. CASH the native stablecoin on Solana. I have also requested a VAMI that is more up to date.