GRAND CAYMAN--(BUSINESS WIRE)--Recent million-dollar domain deals and stories such as the ones around sex.com, slots.com, vodka.com have curbed interest from the public, media and institutional investors in domains as an investment and asset of high interest. With the introduction of an investment fund dedicated only to domains, the market takes another step in establishing domains as a real-life asset.
When domain names had been introduced 25 years ago only few could imagine into what the domain business would grow into.
The fund started in the summer of 2008 when 3 long time domainers from Austria, Hong Kong and Germany joined forces and merged their domain portfolios. Starting in March 2009, the trio offered friends and family to invest into their domain-business to be able to purchase more valuable domains.
Due to the great performance many more investors wanted to move in. In its first year the fund had a performance of 135% and close to 100 investors but was still just a managed account based in Austria.
Early 2010, as even more investors wanted to move in, the trio decided to incorporate the DDF as a mutual and administered fund in the Cayman Islands and to formally incorporate the business. Michael Marcovici, who is the fund´s founder and 1st director expects more competition in the next years: “the domain business is still at an embryonic stage and I see more and more institutional investors are moving into this segment.”
The Domain Developers Fund holds a portfolio of in various segments of the domain market, in the .com space as well as in some of the popular ccTLDs of Germany, India, UK, China, Switzerland, Colombia and many others. On the funds website www.ddf.lu the Fund´s Management is especially bullish for ccTLDs: “search and services are becoming increasingly local and domains just go along, we see the biggest growth in ccTLDs (country code domains) in the years to come.”
The fund uses various monetizing techniques to generate returns of up to 50% of ROI/year and domain. The fund is managed by Michael Marcovici and Alberto Sanz de Lama, both well experienced in online markets and long time domainers. The board of advisers consists of Stefan Piech, Marko Rodzinek and Philip Schindler.
The DDF is the first of its kind and is an opportunity for investors who want to be a part of the domain market. The funds mangers Marcovici and Sanz expect returns of 20 to 40% per year.