Pythagoras Bitcoin Fund Up 230% in Year, Outperforming Spot ETFs

On 22 November, investment management firm Pythagoras' Alpha Long Biased strategy fund has been a stellar performer since its launch, up 230 percent (206 percent after fees) year-to-date and consistently outperforming bitcoin for all but two months, Bloomberg reported. The fund launched in January 2024, just weeks before the approval of the spot bitcoin ETF.

The fund's portfolio is allocated in thirds: one-third is allocated to core bitcoin holdings, one-third uses a trend-following strategy (with the flexibility to adjust up to 2x leverage depending on market conditions), and the remaining one-third is laid out in a long-short strategy that is market-neutral, beta-neutral and dollar-neutral. Mitchell Dong, founder of the fund, said the product is designed to provide investors with an investment alternative to spot bitcoin ETFs.