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It was fun and games when GSA Capital’s Chris Taylor was investing in the crypto craze and run up in ‘doge coin’, but now GSA is all-in in strategic crypto trading. The $2.6 billion hedge fund sees profits in the early development of crypto as swelling hype and volatility will generate inefficiencies. Taylor is Cambridge-trained mathematician and will be part of the crypto research team. GSA was launched at the trading desk in Deutsche Bank, and they will continue arbitrage strategies with crypto. By shorting derivatives and going long on the spot they will continue their history of arbitrage, and further capitalize on crypto’s 40% swell already in 2021.
FINSUM: Quantitative strategies are ripe for exploiting less liquid, less developed markets like crypto.
We’re in the middle of the largest generational wealth transfer of all time. The Baby Boomers, previously the largest living generation, are expected to pass down roughly $68 trillion over the next 25 years to the Millennials...see more on our partner's site
Bitcoin flew by $60,000 and is approaching all-time highs. This was a 4% climb in less than a day. Speculation is what pushed the world’s most prominent cryptocurrency higher, as it seems it seems regulators will be approving the first bitcoin exchange-traded fund. While there hasn’t been anything official, the ETF is set to launch at the NYSE on Tuesday, and investors are expecting the SEC to not object. Investors like Mikkel Morch, executive director at ARK36, are putting $65k price target on bitcoin. The rally wasn’t widespread in all crypto as both XRP and ADA slumped. Regulation is still one of the largest risks as central banks and governments around the globe are weary to embrace. Jon Cunliffe Dpubbt BoE Governor said crypto could spark a 2008 sized financial crisis.
FINSUM: Chinese regulators were the biggest threat to crypto earlier this year, but it appears the U.S. is moving more progressive on crypto regulation moving forward.
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With so much of the innovation driving our economy coming from venture capital-backed companies, why can’t you find VC in most people’s investment portfolios? It’s because early-stage investing has been the sandbox of institutions and the wealthy. These savvy investors allocate to VC to take advantage of the high-growth prospects of startups. It helps that they have the means to withstand the massive financial commitments and fees, the risks of betting on a small number of companies and the years of illiquidity.
No fair. Ordinary investors could also benefit from enhancing their equity holdings with exposure to companies outside the public realm. What if they could have both the exposure to gross returns of the venture capital universe and the daily liquidity of public stocks? One index solved for that back in 2012. The Thomson Reuters Venture Capital Index (TRVCI) uses private company data to identify the systematic drivers of performance in the VC world and then assembles a portfolio of publicly traded securities that replicate those drivers.
Only one mutual fund, the AXS Thomson Reuters Venture Capital Return Tracker Fund (LDVIX), tracks this index by holding what is in the portfolio. That means retail investors can circumvent the restrictions of traditional VC investments and add well-diversified exposure to the high growth potential of the VC space.
With so much of the innovation driving our economy coming from venture capital-backed companies, why can’t you find VC in most people’s investment portfolios? It’s because early-stage investing has been the sandbox of institutions and the wealthy. These savvy investors allocate to VC to take advantage of the high-growth prospects of startups. It helps that they have the means to withstand the massive financial commitments and fees, the risks of betting on a small number of companies and the years of illiquidity.
No fair. Ordinary investors could also benefit from enhancing their equity holdings with exposure to companies outside the public realm. What if they could have both the exposure to gross returns of the venture capital universe and the daily liquidity of public stocks? One index solved for that back in 2012. The Thomson Reuters Venture Capital Index (TRVCI) uses private company data to identify the systematic drivers of performance in the VC world and then assembles a portfolio of publicly traded securities that replicate those drivers.
Only one mutual fund, the AXS Thomson Reuters Venture Capital Return Tracker Fund (LDVIX), tracks this index by holding what is in the portfolio. That means retail investors can circumvent the restrictions of traditional VC investments and add well-diversified exposure to the high growth potential of the VC space.
(Silicon Valley)
Venture capital has always been a hard-to-access asset class for advisors and their clients. The funds tend to have high minimums and long lock-up periods with extremely low liquidity. That said, returns are historically strong, and VC can often be an un-correlated asset class whose returns are differentiated in scope and timing from publicly-traded markets. Because of the lack of liquidity and easy access it has been an asset class that has largely been overlooked by advisors and high net worth individuals. However, there are some ways to access venture capital through liquid funds which are likely worth a look.
FINSUM: Not only can returns because excellent and uncorrelated, but VC is likely to become a more important asset class in the next few years. Why? Because more and more large companies are staying private for longer, which means investors need to ways to access the asset class in order to participate in the total return of the market.