Manhattan Crypto Capital February 2026 Institutional Limited Partner Investor Newsletter Letter from the CEO

Dear Valued Limited Partners,

I am pleased to provide this comprehensive institutional update on the Partnership’s positioning and outlook as we navigate the early weeks of 2026. At Manhattan Crypto Capital, our five-engine investment architecture—comprising cash dry powder in high-yield instruments, private credit, gold and commodities, crypto (spot and futures), and S&P Index and US equities—continues to serve as the foundation for resilient, risk-adjusted performance. This multi-asset, low-correlation framework has once again demonstrated its effectiveness amid elevated volatility across legacy markets, allowing the Partnership to preserve capital while identifying selective opportunities for deployment.

The portfolio currently reflects a deliberate defensive stance, with 62.5% allocated to high-yield cash reserves. This overweight liquidity position stems from two primary factors: disciplined tactical reductions in late 2025, where the Manager trimmed exposures in private credit, the S&P Index, US equities, and select commodities following signals of overvaluation, and the substantial capital inflow received from new Limited Partners in December 2025, which has been held in high-yield instruments pending optimal entry points. Even in this conservative configuration, the reserves continue to generate stable high-single-digit yields while serving as a strategic reserve for future capital deployment.

Performance year-to-date has been anchored by the gold and commodities engine, which has provided meaningful positive contributions as a non-correlated hedge against broader market dispersion. Gold reached an all-time high near $5,608 per ounce in January before stabilizing around $5,022–$5,044 per ounce, reflecting sustained safe-haven demand, institutional accumulation, and geopolitical considerations. In contrast, the crypto complex has experienced material corrections, Bitcoin approximately –20% year-to-date near $68,960–$70,215 and Ethereum –30% to –35% year-to-date near $1,998–$2,084, yet these declines have brought valuations to levels that the Manager views as offering attractive risk-reward for the growth engine. The S&P 500 has traded flat to slightly negative (approximately –0.14% year-to-date near 6,836), exhibiting sector rotation away from mega-cap technology, while private credit has delivered stable contractual income in an environment the Manager assesses as overbought with limited new discounts available.

The Partnership’s five-engine philosophy is expressly designed to achieve genuine diversification through persistently low cross-correlations among the constituent asset classes. Cash and short-duration instruments provide near-zero beta to risk assets and immediate liquidity; private credit offers contractual yield with muted mark-to-market volatility and quarterly liquidity; gold and commodities historically exhibit negative or low correlation to equities during periods of inflationary or geopolitical stress, crypto maintains structurally low long-term correlation to traditional financial markets while serving as the primary asymmetric growth lever, and S&P Index and US equities, augmented by covered-call overlays, deliver broad-market participation with enhanced income characteristics. This construction has materially dampened portfolio volatility and maximum drawdown relative to single-asset or conventional hedge-fund benchmarks, enabling the Partnership to navigate early-2026 market conditions with limited impairment to capital.

Looking ahead, the Manager anticipates a highly volatile year and has reduced holdings in private credit, the S&P 500, equities, and select commodities to minimum levels consistent with the current bear-mandate posture.

Capital deployment priorities for Q1–Q2 2026 center on dollar-cost averaging into discounted crypto exposures across ETFs, futures, spot, and institutional proxies, while simultaneously scaling private credit toward 20–30% of the portfolio to enhance recurring cash-flow generation.

The Manager views private credit as a cornerstone vehicle for its ability to produce high-yield income that can be compounded and rotated into dry powder for subsequent allocation into higher-risk opportunities when attractive deals materialize.

As conditions evolve, the Partnership intends to maintain a balanced, non-correlated wealth portfolio that includes the S&P 500, gold, commodities, and technology-sector equities. Once the crypto market stabilizes and begins to recover, anticipated in Q3 to Q4, the Manager plans to trim profits from that engine and rotate capital back into private credit, high-conviction equities, commodities, gold, and technology. This rotation from periods of market greed to fair value and back embodies the Partnership’s core investment discipline: rigorous risk management first, with healthier, more sustainable returns as the natural outcome.

The Manager recognizes that repositioning and rebalancing across engines typically span an entire quarter, which can temporarily moderate PNL, ROI, and short-term risk metrics. The current portfolio is not yet fully balanced, largely due to the influence of recent capital inflows and the overbought condition of several non-crypto exposures.

Strategic profit-taking has presented challenges when all non-correlated assets appear excessively valued, leaving crypto as the sole sector exhibiting significant discounts. Accordingly, the Partnership anticipates allocating a substantial portion of available capital, potentially beyond standard mandate guidelines, into deeply discounted crypto assets during this period of market fear.

The Manager remains confident that patient, deliberate allocation will position the Partnership for what could prove to be one of its most eventful and profitable years. By methodically planting seeds across the five engines and maintaining liquidity and discipline, the Partnership is well-prepared to capitalize on the opportunities that volatility invariably creates.

Key Points

• The Partnership maintains a highly liquid, defensive posture with 62.5% allocated to high-yield cash reserves, reflecting both disciplined profit-taking from overvalued non-correlated exposures and the integration of substantial new capital received in December 2025.

• Gold and commodities have been the primary performance driver year-to-date, serving as an effective hedge against volatility in legacy markets, while crypto now trades at compelling discounts following material corrections.

• The five-engine architecture—cash dry powder, private credit, gold & commodities, crypto, and S&P Index & US equities—continues to deliver genuine diversification through low cross-correlations, preserving capital and maintaining a “Safe” risk rating.

• Near-term capital deployment will prioritize dollar-cost averaging into discounted crypto vehicles and a measured increase in private credit toward 20–30% of the portfolio to enhance recurring income generation.

• Repositioning across engines may moderate short-term PNL and ROI during the rebalancing cycle, yet the Manager’s focus on risk management positions the Partnership for potentially significant value creation in what is anticipated to be a highly volatile yet opportunity-rich 2026.

Portfolio Allocation Overview As of mid-February 2026, the Partnership’s portfolio allocation by engine stands as follows: Cash dry powder (high yield) accounts for 62.5% of the portfolio, delivering stable high-single-digit yields and demonstrating strong capital preservation.

Cryptocurrency (spot + futures) represents 18.6%, with Bitcoin down approximately 20% year-to-date and Ethereum experiencing a 30–35% year-to-date decline, positioning the sector at discounted levels.

Gold & commodities constitute 9.0%, recording strong gains as gold reached an all-time high of approximately $5,608 per ounce before stabilizing around $5,022–$5,044 per ounce, up 14–16% year-to-date.

The S&P Index & US equities allocation is 8.0%, reflecting flat to slightly negative performance of about –0.14% year-to-date amid observed sector rotation. Private credit comprises 1.9%, providing stable income in a market that is overbought with limited discounts currently available.

Strategic Context This allocation reflects the Manager’s proactive trimming of positions in private credit, equities, and select commodities where valuations had become elevated, combined with the prudent deployment of new capital inflows. The resulting liquidity buffer continues to generate attractive yields while remaining fully available for opportunistic reallocation.

Thank you for your continued confidence and partnership. I look forward to reporting on deployment progress in the coming months.

Zaid Khan, CEO & Founder, Manhattan Crypto Capital

⚠️ LEGAL DISCLAIMER

This content is quantitative research and technical analysis for educational purposes only and does not constitute financial advice, investment recommendations, or a solicitation to buy or sell any security or asset. Investing in securities, ETFs, cryptocurrencies, and other financial instruments involves risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a licensed financial professional before making any investment decisions.