Ok, But That's A Lot Of Bitcoin

From Twitter;

I am not familiar with this person but maybe their portfolio is interesting. I'm not sure how "broad based indexes" differs from just plain "indexes" in the third slot but I replicated his idea as follows

I used materials and staples for the sectors. If he allocates that much to the Mag 7 and that much to indexes then adding more tech would just compound the duplication. I pretty much equal weighted the Mag 7 names and I used managed futures for the "other" category. I used BTCFX instead of the Grayscale product because going back too far with Bitcoin would yield some results that I don't think are repeatable. 

The results are pretty good. The growth rate is better than the S&P 500 and while the volatility checks in a little lower per testfol.io, Portfoliovisualizer shows the profiled portfolio with a higher standard deviation. The drawdowns for the portfolio have usually been larger than for the S&P 500. With that much in Bitcoin, I am surprised the volatility isn't higher. 

Interesting that the large weighting to SCHD didn't spare the portfolio in 2022 but it and Bitcoin probably held it back in 2025.

The allocation to Bitcoin is way too large for me unless he started tiny and it grew into that amount and he's comfortable letting it blow up. That would be harnessing the asymmetry and I think that is ok but I don't know if that is the case. Whatever Mag 7 means to him and owning indexes, presumably the S&P 500 and maybe the NASDAQ 100, seems like a lot of overlap that I think can be captured with far fewer holdings. SCHD might be a good offset to all the tech, likewise the cash exposure and while I don't know what he uses for "other" the managed futures we used is probably helping too.

Fun exercise, short post.

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