Crypto appeals to the pros too

The Intelligent Investor Gaurav Sodhi

Professional investors expect to increase their exposure to alternative investments over the next two years, according to a survey by Nickel Digital Asset Management.

Of the 100 professional investors surveyed, 93% expect to increase their exposure to cryptocurrencies, followed by 74% who expect to increase their exposure to real estate. Other alternative assets included private equity (70%), distressed assets (70%), hedge funds (69%), infrastructure (63%) and private debt (62%).

“We are not surprised to see professional investors planning to increase their exposure to cryptocurrencies,” says Anatoly Crachilov, co-founder and CEO of Nickel Digital.

“It has proved its resilience during the Covid-19 crisis, thus reinforcing the uncorrelated nature of its returns when compared to fixedincome instruments.”

Crachilov warns that Bitcoin and other leading digital assets will remain volatile, but that “the longterm direction of travel is clear – institutional adoption and continued structural appreciation as a reflection of Bitcoin’s inelastic supply and its immutable monetary policy.”

David Teoh’s shock resignation as chairman of TPG, the company he founded in 1986, has spooked the market. And us.

Teoh has gained legendary status in the local telecoms industry. His announcement sounded amicable enough and there is no hint of trouble.

Yet this is not the way a chairman, let alone a storied founder, tends to leave. Even Robert Millner, an early backer of Teoh’s, had no idea of his departure until two days before.

Perhaps there is some unease with the dominance of Vodafone or some disagreement about strategy. Perhaps it is nothing. We simply don’t know.

His departure need not change doesn’t show up in numbers and it might amount to nothing, but we’ve seen this before. Teoh’s sudden and immediate departure is a red flag and we’re acting on it. SELL. GAURAV SODHI IS DEPUTY RESEARCH DIRECTOR AT INTELLIGENT INVESTOR.