FSI Core Strategy
As one might expect, our team holds a long-term bullish view on crypto, and thus believes that over the next decade, simply dollar-cost averaging at opportune times into BTC and ETH will prove to outperform most liquid asset classes. However, to take our research platform to the next level, we would like to offer more services geared towards our cohort of clients and subscribers interested in actively managing their portfolios.
Sean Farrell is the Head of Crypto Strategy at FS Insight. Prior to joining FS Insight, Sean was a manager in the Transaction Opinions group at Alvarez & Marsal, and previously worked as an associate with Anvil Advisors.
What is it?
The Core Strategy offers subscribers an easy and digestible tool to manage their crypto portfolio by following along with our core strategy.
This strategy seeks to outperform the industry's king, bitcoin, by tweaking one's allocations to stablecoins, bitcoin, and select altcoins that our team has evaluated. During times of increased downside risk, one might notice our relative allocation shifting to stablecoins. Similarly, during periods favorable to crypto, one might expect increased exposure to higher beta names further out on the risk curve.
How do I use it?
We do not make recommendations pertaining to the amount of capital an individual should invest in crypto. However, one simply needs to take the total amount they wish to invest and apply the relative weightings provided. This rebalancing approach should help deliver more profits in a bull market and reduce losses in a bear market. If an investor does not wish to copy our exact allocation, this tool will still provide qualitative direction on how risk-seeking we are at any given time.
Broadly speaking, we combine our crypto expertise with macro, on-chain, and market data to make allocation decisions. More specifically, this portfolio seeks to reflect our ability to:
- Identify emerging investment narratives and potential market catalysts
- Understand unique supply and demand mismatches
- Employ thorough fundamental on-chain analysis
- Apply our deep knowledge of macro and crypto cycles
Eligible assets will be those within the top 200 by circulating market cap on CoinMarketCap.com. Given the wide-ranging universe of cryptoassets, we may exclude certain assets from eligibility based on a perceived lack of transparency or inconsistent documentation. All selected assets must also have sufficient liquidity across multiple crypto exchanges.
As compared to our S&P 500 sector allocation tool, the Core Strategy will be updated at our Analyst's discretion, but our portfolio tools will be accessible at any time via our research hub.