Bitcoin (BTC), the world’s leading cryptocurrency, posted a remarkable 121% gain in 2024, crossing the much-anticipated $100,000 milestone and outperforming traditional assets. However, one investment fund managed to leave even Bitcoin’s stellar performance in the dust.
Pythagoras Investment Management’s Alpha Long Biased Strategy fund recorded a jaw-dropping 204% return last year, nearly tripling the gains of Bitcoin. This innovative fund, which combines a BTC base position with two independent strategies, capitalized on market dynamics to achieve these exceptional results.
How the Fund Outperformed
Pythagoras’ Alpha Long Biased Strategy integrates three components:
- BTC Base Position: Provides exposure to Bitcoin’s long-term value growth.
- Momentum Market Timing Strategy: Powered by machine learning, this approach dynamically adjusts exposure to capture short-term fluctuations.
- Long-Short Market Selection Strategy: Employs an AI-based forecasting model to create a balanced portfolio by going long on promising tokens and shorting underperformers.
By optimizing these elements, the fund generated significant alpha while mitigating risk. Even with December’s 2% dip caused by Bitcoin’s retracement from its $108,000 high to $93,000, the strategy outpaced the broader crypto market.
Pythagoras’ Other Funds Also Delivered
The Alpha Long Biased Strategy may have stolen the spotlight, but Pythagoras’ other funds also posted strong returns:
- Arbitrage Strategy: 18% annual gain with $45M in assets under management (AUM).
- Quant Long Short Fund: 30% return with $23M in AUM.
- Absolute Return Strategy: Delivered an impressive 41.7% return, growing to $158M in AUM.
Pythagoras’ total AUM surged to $230 million by year-end, up from $80 million in 2023, reflecting a renewed wave of investor confidence in the crypto bull market.
2025: A Bullish Outlook
Looking ahead, Pythagoras CEO Mitchell Dong expressed optimism for continued bullish momentum in 2025. He pointed to the incoming Trump administration’s crypto-friendly stance, including proposals for a national Bitcoin reserve and key pro-crypto appointments in regulatory roles, as potential catalysts for market growth.
Dong also noted the possibility of countries racing to accumulate Bitcoin to gain a strategic advantage, mirroring corporate players like MicroStrategy, which has made Bitcoin a cornerstone of its financial strategy.
As regulatory clarity improves and institutional demand grows, Pythagoras expects Bitcoin and the broader cryptocurrency market to continue their upward trajectory, fueled by innovation and global adoption.
While Bitcoin’s 121% rise was impressive, Pythagoras’ 204% gain highlights the potential of actively managed crypto funds to deliver exceptional returns in a fast-evolving market. Investors seeking to capitalize on the next phase of the crypto bull run will likely keep a close eye on such strategies in 2025 and beyond.
