We hope you are doing well and thank you for your interest in being part of our journey. Today we want to give you a little update.
AltAlpha Digital was born in a time of inflation, negative interest rates and general uncertainty regarding how assets can be deployed to preserve and grow wealth. For years investors have been increasingly allocating their assets towards alternative investments (e.g., Hedge Funds, Private Equity, Art) to diversify their traditional 60% equity / 40% bonds portfolio. A new asset class, cryptos, have emerged in this space as one of many forms of application of the underlying technology of blockchain, also referenced as distributed ledger technology (DLT) or web 3.0. Simplified, you can see this as an evolved database form that can be distributed across the internet (no single point of failure), while removing the need for people to “trust” each other to interact (e.g., for business purposes) as code will enforce mutually agreed upon terms (i.e., smart contracts). From a portfolio construction standpoint, studies show that adding a 2.5% allocation to crypto to your traditional 60% equity/40% bond portfolio, assuming quarterly rebalancing, would have boosted the median three-year cumulative return by 13.30 percentage points (Bitwise, The Case for Crypto in an Institutional Portfolio, 2021). While this next wave of technological adoption will be anything but a straight line up and to the right (read volatility), we believe it will bear great potential for investors to participate in, while also bearing risks to be aware of.
That is why we created a crypto fund of hedge funds enabling investors to participate in a basket of actively managed strategies with a high degree of diversification, based on talent, strategies, and underlying assets. This one stop shop solution can be accessed for as low as CHF10K through your bank using our Swiss ISIN.
AltAlpha Digital was incubated out of the BFI Capital Group, a Swiss investment and technology group with a 30-year track record, 40 people, $2B in placed assets, and $1B assets under management. You can read more about us here. In short, we are: Frank, a finance entrepreneur with 30 years’ experience, Marc B. a tech serial entrepreneur with multiple exits (most recently selling Crypto Finance to Deutsche Börse), Marc S. a tech enthusiast joining from Google and Facebook, as well as Dirk, a seasoned investment manager veteran with a 30 years’ track record. While we all have different backgrounds and experiences, we have known each other and/or have worked together at various times for decades. Our commonality is that we all have founded multiple companies during our careers, sharing a strong entrepreneurial and ownership DNA when it comes to creating opportunities and value.
Looking forward to interacting with you,
Frank, Dirk, Marc and Marc