The world is changing, and Investors need to adapt
Stay Informed with ByteTree Premium
ByteTree research stands out as it embraces the old world with the new. We cover traditional assets, including equities, bonds, FX and commodities, alongside the new world of crypto. We believe the world is changing, and we aim to change with it.
The 21st century has enabled the private investor to become ever more empowered. There is access to a wide range of securities, at low cost, across many different investment platforms. You can choose from thousands of low-cost exchange-traded funds (ETFs) or even more active funds. There are over 50,000+ listed companies, 20,000+ crypto tokens, 100+ currencies, a handful of commodities and over a million different bonds.
All this choice is progress, but with it comes confusion. With so many possibilities and outcomes in financial markets, ByteTree research helps our clients make more informed investment decisions.
Guided by experienced market professionals, ByteTree Premium provides high quality investment research with accompanying model portfolios across traditional finance and crypto that are simple to follow. We construct portfolios in accordance with risk. High returns require high risk, and vice versa. ByteTree research appeals to a wide range of long-term investors.
We offer three portfolios in traditional finance.
The Multi-Asset Investor (TMAI) is home to Soda (UK-centric) and Whisky (UK and global), while The Adaptive Allocation Report (AAA) is truly global. Soda is medium risk, while Whisky is medium to high risk, and the AAA is high risk.
A diversified major index fund such as the S&P 500 or the FTSE 100 is approximately medium risk. Soda is lower risk by design as it invests more conservatively. Whisky is riskier because when it is fully invested, it can be more volatile than the market. The AAA is high risk because it seeks high returns and can be highly concentrated.
As you will see, there is something for everyone, and our clients can freely choose between them as they like.
The Multi-Asset Investor
Charlie became the editor of the Fleet Street Letter (est. 1938) in 2016, launching the Whisky and Soda portfolios on 1 February of that year.
Over the period (1 February 2016 to 31 December 2022), Soda turned £100 into £202, which compares to £160 for the FTSE Private Balanced Index (a popular measure in wealth management). The Whisky Portfolio turned £100 into £230 against £155 for the FTSE 100 Index. These numbers are in GBP and include dividends.
Soda is diversified across equities, multi-asset funds, bonds and gold. Soda has low turnover, is simple to follow, and should appeal to a cautious investor.
Soda’s success is down to being fully invested in the market during the good times and holding more defensive assets, such as cash and gold, during the bad. By having less risk during the dark times, Soda has been cushioned from market falls and has therefore been in a stronger position to capture subsequent market recoveries.
Whisky is more dynamic and should appeal to active investors. It focuses on UK mid and large cap stocks, thematic ETFs, emerging markets, leading sectors, precious metals and bitcoin.
Like Soda, the Whisky Portfolio varies risk, but it also balances across different types of risk, making them both more resilient during difficult times.
This has never been tested more so than in 2022, when the portfolios have remained positive in a torrid year in financial markets.
The Adaptive Asset Allocation Report
The AAA is unashamedly high risk, high return, and seeks out the most promising four ETFs it can find each month. It does this by analysing trends across the world, and by applying this process repeatedly, the long-term results have been spectacular. It’s not for the faint-hearted, but we reiterate; high returns come with high risk.
The AAA could take you all into commodities or tech, or perhaps even defensive sectors when the models don’t like what they see. But more often than not, they have been right, and the results have been superb. That said, in financial markets, things can sometimes change quickly, and that is why we deem this to be high risk. It’s not for everyone.
The AAA is aimed at the global investor in search of high returns.
ByteTree Research applies the same sound investment principles to crypto, which it has learnt from traditional assets. We have had to adapt to this new world, but one thing that never changes is the investors themselves. It doesn’t matter whether you are talking about bonds or bitcoin, financial markets match buyers and sellers in the same way.
In case you were in any doubt, crypto is ultra-high risk. Fortunes have been made, but they have also been lost. Yet those who took a long-term view, focused on the most credible projects, and kept a level head, have much to be grateful for.
ByteTree research provides informed analysis of this brave new world. Some of the high and mighty in the city towers look down on us for “speculating in electronic tulips”. We don’t mind and pity them for being stuck in the past.
In 2009, crypto started with Bitcoin and has since grown to 20,000+ different tokens. Most will fail, but some will change the world. At ByteTree, our purpose is to separate the wheat from the chaff and lock onto the leading projects that will shake up the financial system.
One example of progress is the stablecoin, or indeed a central bank digital currency, which turns digital “deposits” we hold at our bank into digital “cash” that can move across borders cheaply, securely, and instantaneously – without the need for a bank. How can those grey men in ivory towers ignore this? Even governments are talking about it. Obviously, a stablecoin isn’t intended to be a profitable investment, but the projects behind them most definitely are.
We approach crypto both in terms of its potential and the destruction it will leave behind. Will the banks be able to adapt, or will they become extinct? What does this mean for data management, social media, and payments?
It’s not just money – the big question is whether all shares, bonds, funds, and commodities will one day become tokenised and traded across the crypto infrastructure. We think so because there are so many advantages in doing so, including greater efficiency, higher speed, and the potential for smart contracts.
There is no shortage of forward-thinking smart folk who share this vision with us. Even if investing in crypto isn’t for you, there is no harm in being well-informed about the changing world of finance. But tell that to the ivory towers.
Over the years, we have been gathering data on the Bitcoin blockchain, building models and tools that help us to make more informed decisions that we share with our clients. With an approach that was born out of sound investment principles, ByteTree research delivers ATOMIC and ByteFolio:
Bitcoin is high risk, but no doubt you already know that.
ATOMIC is written by Charlie Erith, the CEO of ByteTree Asset Management, who also manages a crypto fund. Prior to ByteTree, Charlie spent 14 years managing long-only and long/short equity funds with a focus on Asia, and before, he spent 13 years in institutional equity sales at Cazenove. A working life spent amid the volatility and uncertainty of emerging markets has been about as good a preparation for crypto markets as it’s possible to get. As he says, “Digital assets now is in a similar place to Asia in the 1990s – hugely exciting, rich with potential and potentially transformational, but hard to understand and laced with tripwires. It’s a lot of work, but, like all new things, incredibly interesting and a lot of fun.”
We aim to identify coins and tokens with long-term, financially viable use cases, then size them and trade them to maximum effect. We do this not only by a thorough bottom-up examination but also by monitoring trend behaviour. This is not just because it helps generate ideas, but also because it forces us to continually question assumptions. We know that investing in this area is as much about understanding risk as it is about capturing reward.
If bitcoin is high risk, then the rest of crypto is ultra-high risk.
ByteFolio is written by Charlie Erith, while the crypto portfolio is constructed by our investment committee and includes our analysts, Seran Dalvi and Shehriyar Ali.
We combine the knowledge gathered from ATOMIC, ByteTrend, and Token Takeaway to deliver what we believe to be an optimised crypto portfolio. There are typically 6 to 12 holdings, and the aim is to outperform Bitcoin over the long term.
As a premium client, there are some other benefits. On ByteTree Terminal, you’ll notice a menu that appears at the bottom-right of every chart, allowing you to download high quality versions and, in some cases, the raw data in spreadsheet-compatible formats.
There’s also the data, which we may one day turn off from public view. As a premium client, your access is secure.
ByteTree Premium is where you’ll find our most valuable insights and, above all, the portfolios. There are plenty to choose from, and we deliver results across the risk spectrum.
The best way to see if ByteTree Premium is right for you is to try it out. It takes just a couple of minutes to get started. You’ll be pleased to know that a subscription to ByteTree Premium doesn’t break the bank. It costs a very reasonable £25 per month, which isn’t a lot given that this is an investment in your wealth. There is no lock-in, and if it’s not for you, just cancel your subscription at any time. There are no strings attached.
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We look forward to having you as a client on ByteTree Premium.