The ByteTree BOLD index comprises bitcoin and gold, and rebalances monthly according to the inverse historic volatility (360-day) of each asset.
Gold has proved itself a store of value over thousands of years and bitcoin is its digital equivalent. Both are hard assets that are deemed to protect investors from inflation. Gold tends to lead when the economy is contracting, in contrast to bitcoin which has performed best when the economy has been expanding.
The strategy adjusts weightings monthly according to historic volatility. The less volatile asset will be accorded the higher weighting. By automatically adjusting weightings the rebalancing aims to smooth and enhance combined returns over time. This is because the strategy continually favours the less risky asset, as measured by historic volatility.
Gold and bitcoin provide diversification to a balanced portfolio. BOLD offers investors a convenient way to invest in gold and bitcoin, in a structure that prudently manages risk. Rebalancing transactions are carried out within a tax efficient structure.
About the Editor
Charlie Morris is the Editor of the BOLD Rebalancing Report. He is also the Chairman and Chief Investment Officer of ByteTree, which he founded in 2014 as a platform to deliver independent, robust and thought-provoking market analysis.
Charlie's pioneering gold valuation model, developed in 2012, was published by the London Mastels Bullion Association (LBMA) and the World Gold Council (WGC). It is widely regarded as a major contribution to understanding the behaviour of the gold price. Fascinated by the emergence of a new asset class, but unsure how to make sense of it, he started to analyse the Bitcoin blockchain in 2013.
Prior to ByteTree, Charlie has 25 years of fund management experience and is a pioneer of multi-asset investing. At HSBC Global Asset Management, he launched the Absolute Return Service in 2002, which grew to over $3 billion. Much of that success came from moving away from the crowd and embracing a wider range of asset classes that traditional investors were not familiar with at the time.
Subsequently, Charlie managed the Total Return Fund at Atlantic House Fund Management until June 2020, at which point it was ranked number 1 out of 48 funds in the Trustnet Target Absolute Return Sector. He sits on the investment committee for the Society of Technical Analysis and on the Board of Halkin Services, a renowned investment think tank. He has regularly been featured in leading news publications and has given numerous presentations to investment bodies and Universities.
Prior to a career in finance, Charlie served as an officer in the Grenadier Guards, British Army, having graduated from the Royal Academy Sandhurst in 1994.
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