Crypto as Part of A Portfolio

Bitcoin and other crypto assets have a very low correlation to other assets (see table below). This means that they are broadly moving independent of more traditional assets classes such as stocks, bonds and commodities. Despite having high volatility, including crypto assets in a portfolio could result in diversification benefits for the investor. I.e. including a limited amount of crypto assets in a portfolio could potentially decrease the overall volatility of the portfolio. The following graph illustrates a global diversified portfolio with 60% global equities and 40% US bonds vs. a portfolio with 59% global equities and 39% US bonds and 2% Bitcoin both using weekly rebalancing. The portfolio with 2% Bitcoin generated a higher return with lower volatility during this period.

Portfolio With Bitcoin.png
Screen Shot 2018-01-18 at 4.34.55 pm.png

Apollo Capital's Advantage

  • Experienced management team - a unique combination of funds management skills and a deep understanding of crypto assets

  • Dedicated portfolio management - a team approach is required to adequately cover and analyse existing and new crypto investment opportunities

  • Risk management - diciplined portfolio management to manage risks and volatility

  • Security - best-practice security measures

  • Deal flow - established networks and processes for procuring the best deal flow

  • Economies of scale - investing in ICOs at scale can attract discounts

  • Portfolio optimisation - trading and arbitrage strategies to add incremental returns

  • Trading and execution - remove pain points of ownership of various crypto assets

  • Alignment  - every member of the team will invest personally in the Fund