{"id":6396,"date":"2025-01-07T06:02:23","date_gmt":"2025-01-07T06:02:23","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=6396"},"modified":"2025-01-07T06:02:23","modified_gmt":"2025-01-07T06:02:23","slug":"this-crypto-fund-blew-past-bitcoins-121-price-gain-in-2024","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=6396","title":{"rendered":"This Crypto Fund Blew Past Bitcoin’s 121% Price Gain in 2024"},"content":{"rendered":"
\n

Bitcoin (BTC), the leading cryptocurrency by market value, surged 121% last year to cross the six-figure mark, outshining traditional assets. However, this performance falls short in comparison to Pythagoras Investment Management\u2019s Alpha Long Biased Strategy, which pushed the envelope even further.<\/p>\n

The fund, which combines a BTC base position with two uncorrelated strategies, achieved an impressive return of 204% in 2024, Pythagoras said in an email to CoinDesk. That equates to a 3x gain, significantly outpacing the 2x return a typical buy-and-hold bitcoin investor would have realized. The fund charges incentive fee only when it beats bitcoin’s performance. <\/p>\n

The fund’s base position in bitcoin provides direct exposure to long-term appreciation, and the two uncorrelated strategies \u2013 a momentum market timing strategy and a long-short market selection strategy \u2013 generate alpha.<\/p>\n

The momentum strategy employs machine learning and pattern recognition to adjust and optimize exposure dynamically, allowing it to capture short-term market fluctuations. Meanwhile, the long-short strategy utilizes a proprietary AI-based forecasting model to create a dollar-neutral portfolio, making long investments in tokens expected to yield superior returns while shorting those anticipated to underperform.<\/p>\n

The allocation to the three components is calibrated to maximize returns relative to bitcoin.<\/p>\n

Despite its performance, the Alpha Long Biased Strategy was Pythagoras’ smallest fund, boasting assets under management (AUM) of $7 million. It suffered a 2% drawdown in December as the year-end saw BTC climb down from record highs above $108,000 to $93,000.<\/p>\n

Meanwhile, Pythagoras’ Arbitrage strategy delivered a 3% return in December, ending the year with an 18% gain and $45 million in AUM. The Quant Long Short Fund generated a return of 30% in 2024, with $23 million in AUM and the Absolute Return Strategy generated a 41.7% return, gathering $158 million in client funds. Pythagoras said that the top asset gatherer of 2024 will be closed for new investors from Feb. 1.<\/p>\n

The combined AUM of the four funds grew to over $230 million from $80 million in 2023 as the bull market revved up investor confidence. <\/p>\n

Bullish outlook<\/h2>\n

Pythagoras expects the bull market to continue this year, driven by positive regulatory developments in the U.S. and corporate sovereign demand for bitcoin.<\/p>\n

“The incoming Trump administration, with its proposal on creating a national strategic Bitcoin reserve and appointing individuals favorable to our industry in key Executive Branch positions, is expected to be a major catalyst. With over 290 members of Congress who are pro-crypto, we anticipate that supportive legislation for the cryptocurrency industry will gain momentum,” Mitchell Dong, CEO of Pythagoras, said in a note to CoinDesk. <\/p>\n

“As the U.S. Congress explores the idea of a national strategic Bitcoin reserve, we expect some countries to attempt to front-run the U.S. in accumulating Bitcoin, should this initiative come to fruition,” Dong added, mentioning the possibility of listed companies following MicroStrategy’s lead in adopting BTC.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Bitcoin (BTC), the leading cryptocurrency by market value, surged 121% last year to cross the six-figure mark, outshining traditional assets. However, this performance falls short in comparison to Pythagoras Investment Management\u2019s Alpha Long Biased Strategy, which pushed the envelope even further. The fund, which combines a BTC base position with two uncorrelated strategies, achieved an […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-6396","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/6396","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6396"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/6396\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6396"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6396"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6396"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}