Morgan Creek runs an index fund named the Digital Asset Index Fund, in collaboration with Bitwise Asset Management. The index funds provide an increased net-worth financiers exposure to the best digital currencies by market capitalization.
The digital currency financing company has dubbed the challenge the Buffet Bet 2.0, echoing Warren Bufffet’s 1 million USD bet placed in 2007 on the S&P 500 outperforming a bunch of hedge funds versus Protégé Partners. Buffet was victorious and dedicated his rewards to charitable purposes. The same way, Morgan Creek is challenging any financiers that think the S&P 500 would yield better revenue than Morgan Creek’s digital currency financing over a decade.
Co-creator and Morgan Creek’s partner, Anthony Pompliano, stated that the wager opponent would either be somebody optimistic on the index fund or just somebody who thinks that digital currencies are overvalued.
Pompliano has also thrown shade at public equities, pointing at the latest losses of the Diamondback Energy located in Texas, as well as other financier’s favorites, such as Facebook, which, for instance, is suffering a 24% year-to-year loss.
Despite the fact that Pompliano and his collaborators at the hedge fund are supporting their bet with their own funds and not the business’s ones, the collaboration has yet to find somebody to support the bet from its other side.