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For Traders from Club iNSIDER: Bitcoin Accelerates Active Fund Performance

Post Views: 249 Bitcoin – A New Tool for Active Fund Managers With the growing interest in Bitcoin and the declining popularity of traditional actively managed equity funds, more asset managers are considering incorporating the cryptocurrency into their equity strategies. Bitcoin increases the volatility and risk of portfolios but may contribute to outperformance relative to benchmarks—similar to the role of high-yield bonds in active fixed-income management. Bitcoin – The New “High Yield” for Active Equity Managers Actively managed bond funds often outperform the Bloomberg Aggregate Bond Index because they can invest in high-yield bonds that are not part of the benchmark. Until now, equity fund managers lacked a similar advantage. By including Bitcoin in their portfolios, active equity managers now…

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