GABI

GLOBAL ADVISORS
BITCOIN INVESTMENT PROGRAM
FEBRUARY 2016

2016 GLOBAL ADVISORS (JERSEY) LIMITED2016 GLOBAL ADVISORS (JERSEY) LIMITED
TABLE OF CONTENTS
KEY FACTS
THE MANAGER
OUR STRATEGY
BITCOIN FACTS
BITCOIN IN NUMBERS
BITCOIN AND OIL
BITCOIN: GAME-CHANGER
OUR TEAM
OUR TECHNOLOGY
RISK MANAGEMENT
OUR OPERATIONS
STRUCTURE DIAGRAM
SERVICE PROVIDERS
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14
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15
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OUR INVESTMENT OBJECTIVE
GABI PERFORMANCE
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INVESTMENT TERMS 18
CONTACT
DISCLAIMER
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2016 GLOBAL ADVISORS (JERSEY) LIMITED
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KEY FACTS THE MANAGER
Global Advisors (Jersey) Limited has a 15 year history of managing
client funds as a regulated investment manager. The firm’s principals
started trading the commodity markets over 30 years ago, initially in a
discretionary capacity and more recently evolving to an advanced
systematic approach.
Our approach to Bitcoin marries our insights from trading the emergent
energy markets with our open-minded attitude and commitment to
technology
FUND
MANAGER
INCEPTION
LIQUIDITY
Global Advisors Bitcoin
Investment Fund PLC (GABI)
Global Advisors
(Jersey) Limited
September 2014
Monthly or Daily by Agreement
AN INNOVATIVE, UNIQUE, UNCORRELATED
ASSET MANAGEMENT PROGRAM
OUR STRATEGY
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REGULATOR Jersey Financial Services
Commission
Bitcoin is a rare, truly uncorrelated investment opportunity. We believe
that Bitcoin will change money as we know it, and we have developed
a way to offer it as an investment.
Global Advisors (Jersey) Limited has created the first institutional grade
Bitcoin investment strategy ("GABI"), applying the highest professional
management standards to create a truly groundbreaking venture.

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Bitcoin is a decentralized electronic payment system and a
virtual currency based on open-source technology. Since its
introduction, Bitcoin’s popularity as a digital currency
and as a “peer-to-peer” technology has grown. Its
growth can be seen as part of the emergence of the “sharing
economy”: phenomena such as social networking, music-
sharing, and platforms such as Airbnb and Uber that have
disrupted conventional and mature areas of business.
BITCOIN FACTS
Bitcoin was launched on the internet in January 2009 with
the quote: "The Times 03/Jan/2009 Chancellor on brink of
second bailout for banks."
The new independent digital currency was launched explicitly
in response to the failings of the mainstream financial system
that were exposed by the financial crisis. Since then, its
potential as an alternative investment outside the traditional
financial system has been growing. It is now one of the
few truly uncorrelated investment opportunities
available.
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*As of December 2015. Sources: coindesk.com,
blockhain.info, Goldman Sachs, Global Advisors
(Jersey) Limited proprietary research.
NUMBER OF BITCOINS IN CIRCULATION
MARKET CAPITALIZATION
PRIVATE VENTURE CAPITAL FUNDING TO DATE
ADOPTION RATE
15 Million
$6.5 Billion
$929 Million
2% Of merchants
accept bitcoin
25% Say they plan
to in the next 2 years
BITCOINS IN
CIRCULATION
15 million bitcoins
in circulation
USD 1 billion Private VC capital invested
BITCOIN IN NUMBERS
GLOBAL ADVISORS $ BITCOIN PRICE
FORECAST
$1,300 by the end
of 2017
Bitcoin is not issued by a central authority or managed by a central
bank. It is not subject to policy interventions and systemic risk,
therefore it offers a potentially uncorrelated asset.
Bitcoin supply is limited by design, therefore increased
demand will drive its price up.
GLOBAL ADVISORS
$ BITCOIN
FORECAST
$1,300 by the end
of 2017
Increasing monthly # transactions
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WHAT DO BITCOIN AND OIL HAVE IN COMMON?
“At Global Advisors we first became involved Bitcoin through our
interest in technology. After studying it for a while we were struck
by the similarity we saw to the oil market in the early days of
deregulation. This is a story we know well, having achieved
success in commodity trading in its early days.
Looking at the oil market in 1987, we observed lots of volatility,
lots of credit risk, illiquidity in the market, scant regulation and a
generally rather chaotic environment. The investment thesis
was clear, despite the risks and structural
inadequacies. We went on record in 1999 by stating that by
2010 we would need 50% more oil production to satisfy the
depletion that was being seen in global reserves and the demand
from China, and the only way that could happen was for the oil
price to be higher. We recognised the global forces that would
result in an oil and commodity bull market.
Today bitcoin is somewhat chaotic, illiquid, volatile,
misunderstood, under-regulated and embryonic – but, as with oil,
it has a very compelling story. Our argument says that this type of
cryptocurrency (or Blockchain technology) is a much more
advanced and sophisticated way of transferring value and assets,
and that global trends will drive price appreciation and
mainstream adoption.
This present time is for Bitcoin what 1987 was in the oil world.
We believe there is a very long runway ahead – perhaps 10
years. We believe the destination is one where this kind of
technology is widely adopted.
We believe that Bitcoin will change money as we
know it, and we have developed a way to offer it as
an investment.”
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WE BELIEVE BITCOIN
IS A GAME-CHANGER
While Bitcoin remains controversial, there are a number
of global trends that have the potential to push it to the
next level and bring it into the mainstream.
Its potential as a cheaper, faster
platform for global
micropayments, challenging banks
and remittance services: a $26.9
trillion market in 2015, projected
to grow +27% annually to 2020
(source: statista.com 2015)
Only 62% of adults in the world
have bank accounts but 95% of
people in China, 78% in Nigeria and
53% in Pakistan own a cellphone
(source: World Bank 2014, Pew
Research Centre 2013)
The demand by the world’s institutional
asset managers for truly
uncorrelated assets: Europe alone has
35,000 investment funds
managing 6 trillion Euro assets
(source: Thomson Reuters)
Its value as a “safe haven”
from fiat currency risk
(policy intervention, currency
manipulation, sovereign default)
The advantages of the underlying
technology over traditional centralized
systems in a number of areas including
banking, derivatives, insurance, rights
management: $3 billion was invested
in fintech in 2013, projected to grow
to $8 billion in 2018
(source: statista.com 2015)
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OUR INVESTMENT OBJECTIVE
GABI PERFORMANCE*
*Performance of the Global Advisors Bitcoin Investment Program, net of all fees and expenses.
Past performance is not a guide to what may happen in the future. Please read in full the the
disclaimer at the end of this presentation.
The aim of GABI is to provide exposure to the price
movements of bitcoin, while managing the risks inherent
in any new asset class.
GABI and bitcoin perform in an uncorrelated manner to conventional
financial assets, including commodities.
GABI manages the exposure to bitcoin depending on
market conditions, and outperforms its benchmark, the
$Bitcoin index, over the long term.
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OUR TEAM
DANIEL MASTERS
CO-PRINCIPAL, CHIEF
INVESTMENT OFFICER
CO-PRINCIPAL, HEAD OF
TRADING & OPERATIONS
RUSSELL NEWTON
CO-PRINCIPAL,
HEAD OF RESEARCH
SIMON HARMAN
DIRECTOR, HEAD OF LEGAL
& COMPLIANCE
DWAYNE DREXLER
NON EXECUTIVE
DIRECTOR
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JEAN-MARIE MOGNETTI

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OUR TEAM
Mr. Masters is a director of Global Advisors (Jersey) Limited (GAJL) and
a director and shareholder of GA holdings. He is registered with the
National Futures Association (NFA)as a Principal, an Associated Person
and an NFA associate member of GAJL and is approved as a Key
Person of GAJL by the Jersey Financial Services Commission (JFSC).
From February 1994 to February 1999 Mr. Masters was employed by
Morgan Guaranty Trust Company (“MGT”) in New York. His last
position there was Head of the Global Energy Trading business. In this
capacity he directed trading strategies and was responsible for risk
management for a group of some 30 individuals. Mr. Masters’ business
mandate spanned all actively traded energy bases including physical
markets, forward transactions, swaps, options and exotic derivative
products.
Mr. Masters was also responsible for directing research into methods of
profiting systematically from the price, political and fundamental
information available in the energy markets. From July 1987 to January
1994, Mr. Masters was employed by the Phibro Energy Division of
Salomon, Inc. (“Phibro”). Latterly, his responsibilities at Phibro included
several trading and risk management functions. He was involved in the
establishment of the UK natural gas and electricity markets, transacting
some of the first electricity forward agreements and some newly
structured options-related physical natural gas deals.
Prior to this, Mr. Masters held a senior trading position in the Zug,
Switzerland, office of Phibro, where Mr. Masters ran a speculative
forward, physical and futures book focused on the Atlantic basin region,
including Brent, WTI, Dubai and several other physical grades.
He also was an original and subsequently very active participant in the
Contract for Difference (“CFD”) market in Europe, trading based on price
relationships between physical crude and corresponding futures. Mr.
Masters’ first employment, from September 1985 to June 1987, was
with Shell International Trading Company in London, UK, one of the
largest physical oil trading companies in the world.
During this period he had experience as a physical oil trader in the
European and Mediterranean region, an energy risk manager and a
coordinator of a portfolio of physical North Sea crude oils. Mr. Masters
earned a Bachelor of Science (Honours) in Physics from Exeter
University, UK in 1984, and followed that with a Masters in
Management Science and Operational Research from Imperial College,
London, UK in 1985.
DANIEL MASTERS CO-PRINCIPAL, CHIEF INVESTMENT OFFICER
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OUR TEAM JEAN-MARIE MOGNETTI CO-PRINCIPAL, HEAD OF TRADING & OPERATIONS
Mr Mognetti is a director and shareholder of GAJL and a director of GA
holdings. Mr. Mognetti is registered with the NFA as a Principal, an
Associated Person, and an NFA associated member of GAJL and is
approved as a Key Person of GAJL by the JFSC. Mr Mognetti joined
GAJL in January 2011 as a Quantitative Trader.
From November 2009 to December 2011 Mr. Mognetti worked at
Hermes Commodities Fund Managers where he was employed as a
commodities quantitative strategist. At Hermes Mr Mognetti delivered a
number of quantitative projects designed to enhance the firm’s trading
activities, including quantitative analysis and modeling.
Throughout his academic career Mr Mognetti also held a number of
short-term positions including Exotics Trader Assistant at Lehman Brothers
in London (2008); Financial Analyst for SN Brussels Airlines in Paris
(2007) and Sales Analyst for Sony Computer Entertainment Europe in
Paris (2005). Mr Mognetti holds a MSc in Mathematical Trading and
Finance from the Sir John Cass Business School, London (2009), an MSc
in Bank-Finance-Insurance (2008) and a Degree (BSc) in Economics &
English (2007) from the University Paris X, France.
Mr Mognetti is fluent in French, English and Spanish.
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OUR TEAM RUSSELL NEWTON CO-PRINCIPAL, HEAD OF RESEARCH
Mr. Newton is a director of GAJL and a director and shareholder of GA
holdings. He is registered with the NFA as a Principal, an Associated
Person and an NFA associate member of GAJL with the NFA and is
approved as a Key Person of GAJL by the JFSC.
From July 1994 to February 1999 Mr. Newton was employed by MGT
in London where he held several positions including his last position as
Global Commodities Strategist.
This post covered base and precious metals as well as energy, and
included development and execution of new derivative trade structures,
market analysis (economic, fundamental, statistical and technical),
market modelling and technical trading system design.
Prior to this, Mr. Newton was Head of European Energy Trading at
MGT, while also trading a forward, futures, physical and swaps
speculative book, focusing on Brent and Dubai crude oils.
From 1987 to 1994 Mr. Newton traded North Sea and Middle Eastern
crude oil markets for Shell International Trading Company (from
September 1986 to November 1992), Phibro (from December1992 to
January 1994) and finally Rheinoel Limited (from January 1994 to July
1994), all in London.
In the late 1980s, while Head of Futures and Forwards trading at Shell
International Trading Company, he was among those responsible for
developing pricing models of the Brent CFD market.
Mr. Newton has extensive experience in computer systems analysis,
design and programming. He is skilled in several computer languages.
Mr. Newton received a Bachelor of Arts (Honours) in Natural Sciences
(Experimental Psychology) from Cambridge University, UK, in 1986. Mr
Newton is also a member of the Chartered Institute of Securities &
Investments.
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OUR TEAM
SIMON HARMAN
DIRECTOR, HEAD OF LEGAL & COMPLIANCE
Mr Harman joined Global Advisors in 2015 and is currently the Head of
the Jersey Office.
His career was initially military and legal, before moving on to gain
extensive risk, compliance and corporate governance experience
globally at board level within independently owned, private equity
backed, and bank owned companies.
Prior to joining Global Advisors his most recent roles have involved
overseeing multi jurisdictional Group Risk, Compliance and Legal
functions with responsibility for Compliance and Governance standards
maintained within various firms.
Mr Harman's qualifications include BA(Hons), PgDL, Chartered MCSI,
DipPFS , MIoD and Cert CII (MP). He is also a a qualified flying
Instructor and Commercial Pilot.
Mr. Drexler joined Global Advisors in 1999. Prior to joining Global
Advisors, Mr. Drexler was employed by MGT in New York, from May
1998 to May 1999.
He was a part of the Commodity Operations group and was assigned to
a middle office role for the global energy derivatives trading desk.
From July 1995 to May 1998, Mr. Drexler worked for J.P. Morgan &
Co. in the internal audit department. His projects focused mainly on the
risk management and operational controls in the trading businesses of
J.P. Morgan & Co.
He was also trained in technology auditing and used those skills to
review several major trading and risk management systems within the
firm. Mr. Drexler graduated with a triple major from Georgetown
University in 1995, with a Bachelor of Science/Bachelor of Arts in
Accounting, Finance, and International Business
DWAYNE DREXLER
NON EXECUTIVE DIRECTOR
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RISK MANAGEMENTOUR TECHNOLOGY
A CUTTING EDGE APPROACH
In its 15 year history, Global Advisors (Jersey) Limited has fully
recognised the importance of technologies in order to achieve
improved trading efficiency whilst at the same time minimising
operational risk. Over the last decade, we have invested in first
rate talent to support the development of a robust infrastructure in
order to ensure the delivery of seamless performance throughout
the trading cycle.
Our evolution into a leading manager in our space is the result of
an open-minded attitude and commitment to technologies and their
effective application within the firm. We have pioneered the
automation of trading and reporting systems having in mind our
clients’ interests and our fiduciary duties. To minimise human errors,
orders are dispatched electronically from our trading software with
a constant focus on best execution. Trades are reconciled
automatically in our order management system and at the
administrator level.
This hands-on technology oriented approach has created the
backbone for the launch of the first fully regulated Bitcoin
investment vehicle in the world.
Bitcoin is a frontier market, many aspects of it remain immature
and ill-understood, and regulation is still evolving.
Buying bitcoins independently could expose you to a number
of risks, which include:
Obsolescence risk
Price risk and volatility
Liquidity risk
Risk of adverse technological developments
Risk of loss, theft or fraud
Counterparty risk
Regulatory and tax risk
GABI is the first investment vehicle to manage these risks
systematically by applying the principles of professional investment
management.
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OUR OPERATIONS
A BESPOKE SYSTEM SHAPED THROUGH 15
YEARS OF TRADING HISTORY
Global Advisors (Jersey) Limited brings to Bitcoin the extended
experience of its team across different asset classes and market
conditions. We are the first to apply professional
investment management standards to this new market.
Being the first in the market has given us a competitive advantage.
We know how to evaluate and test the strength of our
counterparties despite the absence of credit rating or ISDA. We
conduct random due diligence on our active counterparties to
ensure they are maintaining the high standards which we demand
as part of our routine operations. We are constantly monitoring
factors like market activity, news flow, new market entrants,
regulatory developments, and technical developments on the
Bitcoin network.
Market liquidity
Exchange activity
Performance of appointed service providers and trading
counterparties
Emergence of new products, service providers and
counterparties
Global regulatory developments
Technical developments with Bitcoin network
News flow
Flows in/out of Bitcoin
Global macro and commodity market risks
Prices of competing assets (gold, oil, copper, FX)
THE MANAGER MONITORS:
Only source Bitcoins from regulated sources
Ensure rigorous selection standards and regular due
diligence on trading counterparties and service providers
Appoint multiple service providers wherever possible
Provide multiple layers of insurance
THE STRATEGY WILL:
Participate in related commodity and currency markets to
mitigate risk and enhance return
IN ADDITION:
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STRUCTURE DIAGRAM
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SERVICE PROVIDERS
GLOBAL ADVISORS
(JERSEY) LIMITED
MOORE
MANAGEMENT
LIMITED
ELLIPTIC VAULT
LIMITED
CAREY OLSEN
JERSEY FINANCIAL
SERVICES
COMMISSION
INVESTMENT MANAGER ADMINISTRATOR AUDITOR
CUSTODIAN LEGAL REGULATOR
KPMG CHANNEL
ISLANDS LIMITED
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INVESTMENT TERMS
1%MANAGEMENT FEE
20% ABOVE 15%
ANNUAL HURDLE
PERFORMANCE FEE
£70K OR CURRENCY
EQUIVALENT
MINIMUM INVESTMENT
MONTHLY OR DAILY
BY AGREEMENT
SUBSCRIPTION/REDEMPTION
CALENDAR
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CONTACT
26-30 Queen Street,
St Hélier, Jersey, JE2
4WD, Channel Islands
ADDRESS
@GABIJersey
TWITTER
info@globaladvisors.co.uk
EMAIL
+44 (0)1534 513 100
TEL
www.globaladvisors.co.uk
WEB
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The following important information relates to the use of
Global Advisors (Jersey) Limited (“GAJL”) website. Please
read it and acknowledge your acceptance before
accessing this website.
GAJL is authorized and regulated by the Jersey Financial Services
Commission in the conduct of investment business and fund services
business. GAJL is registered as a commodity-trading advisor, operating
pursuant to a CFTC regulation article 4.7, with the Commodities
Futures Trading Commission and a member of the National Futures
Association. (No. 0405699).
GAJL is a registered company (No. 102184) with its trading office at
26-30 Queen Street, St Hélier, Jersey, JE24WD, Channel Islands.
This website is directed only at persons who:
a) Are expert investors who fall within the definition of “Expert
Investors published by the Jersey Financial Services Commission, or
b) Are otherwise permitted to view this website in compliance with the
governing laws of their respective jurisdiction.
It is not directed at or intended for retail clients.
Any person considering an investment into any of GAJL’s products must
ensure that they are suitably qualified, experienced and
knowledgeable on such investments considering jurisdictional rules,
regulations and restrictions, tax implications, residence or domicile
and their financial circumstances.
Past performance is not a guide to what may happen in
the future. Prospective investors should be aware that the
value of their investments could fall as well as rise. Any
investment carries the risk of potential loss of capital and
investors may not get back the value of their original
investment.
Information on this website may include data and opinions derived
from third parties sources, GAJL does not accept liability for the
accuracy or completeness of any such information or opinions which
can be subject to change without notice. Furthermore, the information
provided does not constitute an offer to buy or to sell shares, nor does
it constitute investment, legal or tax advice. Details relating to the
investment including the risk disclosures can be found in the Offering
Document.
This brief statement cannot disclose all the risks and other significant
aspects of the various market traded by GAJL.
Pursuant to an exemption from the CFTC in connection with accounts of
qualified eligible persons, the contents of this website do not require to
be, and has not been, filed with the CFTC. The CFTC has not passed
upon the merits of participating in any of GAJL's investment programs
or the adequacy of the contents of this website.
Taking into account the information herein, if you are in any doubt as
to whether this investment is suitable for you and before you proceed
to accessing the website, you should consult your financial advisor. By
agreeing to access this website you accept the statement of disclosure
above and undertake to provide true and accurate information upon
request.
GLOBAL ADVISORS (JERSEY) LIMITED
IMPORTANT INFORMATION
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