ByteTree Research on Substack focuses on two strategies that are set to deliver outsized returns over the coming years. The first is the 21Shares ByteTree BOLD ETP, which combines Bitcoin and Gold on a risk-weighted basis.
The objective is to enhance gold in a world where the only certainty is continued monetary expansion in an over-indebted and inflationary environment. Bitcoin leads in bull markets, while gold takes care of the bears. It is a remarkable combination that equalises the amount of risk in each asset.
BOLD, S&P500, Treasuries and Gold
We publish pieces on gold (since 2012), Bitcoin (since 2013) and BOLD (since 2019) each month. These are publicly visible, and you can read them here on ByteTree Research. Please subscribe to support our work and receive future updates to your email.
What Is Included in our Paid Subscription?
Our other strategy, ByteTree Venture, focuses on special situations and deep value in global equities. In recent years, we’ve seen a surge in not just large technology stocks but in large caps across the developed world. They have left the smaller companies behind, and that’s the opportunity to make money.
Smaller companies normally grow faster, while large companies defend their position and pay dividends with their surplus cash. I can illustrate that with small, mid, and large-caps since 1994, as far back as the data will go. Note how large-caps have been catching up, while small and mid-caps have stalled. The only other times this happened were in the late 1990s, the late 1960s, and the late 1920s, and we know how those periods ended.
US Large, Mid and Small Caps – past 30 years
This is important because value always wins when growth stocks implode. If you believe we are living in an equity bubble, value is what survives. Deep value investing is both an art and a science. The data shows you what’s cheap, but then you need a catalyst for that value to be realised. That could be a change of management, a new product, a takeover or merger, a new regulation, an innovation, a refinancing, or simply a change in macroeconomic conditions. Not only that, but Venture will cover commodities and commodity producers, with mining and oil being our speciality.
Venture is far-reaching, with trades in the UK, Austria, Canada, China, Germany, and Italy. Most have been in the UK, simply because that’s where the most value can currently be found. Issues such as Brexit and the Truss/Kwarteng short-lived government kept international investors away. Yet the UK companies carried on, many of which are world-class but trading at low valuations. Rich pickings are not only available in the UK but across Europe and Asia.
Each recommendation is different and focuses on the business’ strengths and weaknesses, their competitors, and their market opportunity. Venture is, on average, published three times per month. We do not make recommendations on a fixed-time basis because the market doesn’t work like that. We make them when we find a good idea. Every recommendation comes with a risk assessment that often challenges the upside target. If it’s a high-risk situation, it is highlighted, but most would be medium to high risk, which is in line with a typical blue-chip stock.
The 21st century has enabled the private investor to become ever more empowered. Today’s investment platforms provide access to a wide range of securities around the world at low cost. ByteTree Venture helps our clients identify profitable opportunities to put their money to work.
About the Editor
ByteTree Research was founded by Charlie Morris, an experienced fund manager since 1997 and 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 in institutional and private wealth. 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. His funds invested in equities and bonds alongside alternative assets such as gold, commodities, real estate, credit, private equity, and hedge funds.
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. Charlie first recommended Bitcoin in late 2015, at around $250, from which it rose over 200 times.
With his expertise in Bitcoin and Gold, Charlie realised the merits of combining the world’s two most liquid alternative assets into an inflation-protection strategy, and the BOLD Index was launched in 2019.
Why Subscribe?
Financial markets are far-reaching, and with so much choice, our research will give you actionable ideas from which you can profit. Thousands of private investors have benefitted from our work over the years. The feedback we have received has been overwhelmingly positive, and we are proud to have a 4.8 score on Trustpilot. These are some of the reviews we have received:
Disclaimer
ByteTree Research is issued by ByteTree Asset Management Ltd, an appointed representative of Strata Global which is authorised and regulated by the Financial Conduct Authority. ByteTree Asset Management is a wholly owned subsidiary of CryptoComposite Ltd.
General - Your capital is at risk when you invest, never risk more than you can afford to lose. Past performance and forecasts are not reliable indicators of future results. Bid/offer spreads, commissions, fees and other charges can reduce returns from investments. There is no guarantee dividends will be paid. Overseas shares - Some recommendations may be denominated in a currency other than sterling. The return from these may increase or decrease as a result of currency fluctuations. Any dividends will be taxed at source in the country of issue.
Funds - Fund performance relies on the performance of the underlying investments, and there is counterparty default risk which could result in a loss not represented by the underlying investment. Exchange Traded Funds (ETFs) with derivative exposure (leveraged or inverted ETFs) are highly speculative and are not suitable for risk-averse investors.
Bonds - Investing in bonds carries interest rate risk. A bondholder has committed to receiving a fixed rate of return for a fixed period. If the market interest rate rises from the date of the bond's purchase, the bond's price will fall. There is also the risk that the bond issuer could default on their obligations to pay interest as scheduled, or to repay capital at the maturity of the bond.
Taxation - Profits from investments, and any profits from converting cryptocurrency back into fiat currency is subject to capital gains tax. Tax treatment depends on individual circumstances and may be subject to change.
Investment Director: Charlie Morris. Editors or contributors may have an interest in recommendations. Information and opinions expressed do not necessarily reflect the views of other editors/contributors of CryptoComposite Ltd. ByteTree Asset Management (FRN 933150) is an Appointed Representative of Strata Global Ltd (FRN 563834), which is regulated by the Financial Conduct Authority.
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