Anthony Pompliano Presses Pension Funds Into Bitcoin Allocation
Anthony Pompliano Pushes Pension Funds Into Crypto Allocation
As pension funds have issues with their funding, Morgan Creek Digital co-founder Anthony Pompliano continues to press them into adding more Bitcoin into their portfolios.
In a letter to investors, Pompliano stated that pension funds such as the California Public Employees’ Retirement System (CalPERS) will do well to invest in Bitcoin instead of increasing their allocations of illiquid assets. “It is as clear as possible — adding an allocation to Bitcoin would increase the risk-adjusted returns for a public pension fund,” said Pompliano.
He suggests pension funds allocate between 1-5% of their portfolios in Bitcoin, adding:
“And you want to know where the greatest innovation is occurring at the moment? Bitcoin. There is a group of individuals who have built a $150+ billion asset with the goal of assuming the position of the next global reserve currency. If that happens, it will be the best performing asset for the next 20+ years. But even if that doesn’t happen, things will be okay.”
Morgan Creek has long pushed for more pension funds to direct at least 1% allocation in Bitcoin. In January CEO Mark Yusko said that if foundations had a 1% allocation five years ago, they would’ve gained 9.2% in alpha — or the performance of a portfolio relative to a benchmark — than the 7.2% they actually gained in that time period. So far, two pension funds from Virginia invested in Morgan Creek.
Morgan Creek is not the only space participant believing in crypto’s growth within the pension world. Avanti Bank founder and CEO Caitlin Long said in April that the crypto and blockchain industries need to prove their advantages to big pension funds such as CalPERS.
