The Morgan Creek Digital founder, Anthony Pompliano is introducing an investment thesis that he calls a radical protection portfolio – focused on investing 5% of someone’s available cash in BTC.
The Daily Hodl notes that even if past performance doesn’t indicate future results, Pompliano is showing the impact that the investment strategy would have had in the past.
A previous version of the Radical Protection Portfolio has been done
“A version of the Radical Protection Portfolio has previously done very well. A 99% cash / 1% Bitcoin portfolio would have driven ~10% annualized returns. A 98% cash / 2% Bitcoin portfolio would have driven ~20% annualized returns,” Pompliano says.
According to him, both of these allocations have been able to accomplish this outperformance while, at the same time, taking less risk compared to investing exclusively in Treasury bonds.
He continued and said: “I call this portfolio the ‘Radical Protection Portfolio’ because it accomplishes two things: (1) capped downside risk of only 5% and (2) potential upside returns in the 20%+ range. There just aren’t many other portfolio constructions that rival these potential outcomes.”
He says that in the worst-case scenario, a user can lose up to 5% of their portfolio which, according to him, is no tragedy.
You can check out the complete post in order to find out all the details.
S&P500, Gold & US 10Y Treasury bonds are on a nice risk/return-line. Investors can do slightly better by mixing assets and capture correlation.#bitcoin risk/return is another universe. 1%BTC + 99%Cash portfolio: 10% return + max 1% loss, beating S&P on 2Y risk/return EVERY YEAR pic.twitter.com/KZaBjXogom
During a brand new interview with Yahoo Finance, Anthony Pompliano says that he’s doubling down on his prediction that BTC will end the year 2021 at $100k.
“I think by the end of 2021 we’ll see it eclipse $100,000. And really, that’s just driven by more institutional interest and then also a lot more global instability that we’re seeing the early days of today…” according to Pompliano.
He continued and said, “The important thing to remember about Bitcoin is that it’s a fixed supply asset and so supply and demand economics apply. If there are increases in demand, you’re going to see the price move up.”