While pension funds are struggling with the funding, Morgan Creek Digital co-founder Anthony Pompliano continues to insist that they add more bitcoins to their portfolios.
In a letter to an investor, Pompliano said that pension funds such as the California Public Servant Pension System (CalPERS) would be successful in investing in bitcoins, rather than increasing the distribution of illiquid assets. Pomposiano said: “It’s as clear as possible – adding a discount on bitcoins will increase the profitability of the state pension fund adjusted for risk.”
It is estimated that pension funds place 1 to 5% of their portfolios in bitcoins. he added:
“And you want to know where the biggest innovations are happening right now?” Bitcoin There is a group of people who have accumulated a $ 150+ billion asset to take the position of the next global reserve currency. If this happens, it will be the most effective asset over the next 20 years. But even if this does not happen, it will be good. ”
Morgan Creek has always paid more pension funds to get at least 1% of Bitcoin deductions. In January, CEO Mark Jusko said that if the institutions allocated 1% five years ago, they would have reached 9.2% in the alpha version or the portfolio’s performance compared to the benchmark portfolio – from 7.2% in fact over this time period. So far, two Virginia retirement funds have invested in Morgan Creek.
Morgan Creek is not the only player in the industry to see the growth potential of coding in the world of pensions. Avanti Bank founder and CEO Caitlin Long told Cointelegraph in April that the crypto and blockchain industries must prove that they can handle large pension funds like CalPERS.