Pythagoras Fund Outshines Bitcoin with 204% Return in 2024
With a 121% increase in 2024, Bitcoin—the largest cryptocurrency in the world by market value—surpassed conventional asset classes and broke the six-figure barrier. However, Pythagoras Investment Management’s Alpha Long Biased Strategy, which produced an astounding 204% return last year, overshadowed this remarkable gain.
This cutting-edge fund combines two uncorrelated strategies—long-short market selection and momentum-based market timing—with a core Bitcoin exposure. When combined, these strategies increase profits while lowering risk, yielding a 3x return that is significantly higher than Bitcoin’s 2x return for buy-and-hold investors. Interestingly, the fund aligns its success with investors by only charging incentive fees when its performance surpasses that of Bitcoin. Pythagoras demonstrates the potential for active management in the cryptocurrency field by concentrating on both the long-term growth of Bitcoin and the strategic generation of alpha.
Pythagoras CEO Predicts Bitcoin Boom Backed by U.S. Strategic Reserve Plans
Even with its impressive 204% return in 2024, Pythagoras’ Alpha Long Biased Strategy, which manages $7 million in assets under management (AUM), is still the firm’s smallest fund. When Bitcoin fell from its peak of $108,000 to $93,000 in December, the fund saw a slight 2% decline. Other Pythagoras funds also generated excellent results:
- Arbitrage Strategy: With $45 million in AUM, a 3% December gain and an 18% annual return were attained.
- Quant Long Short Fund: Ended the year with an AUM of $23 million and a 30% return.
- Absolute Return Strategy: Gained 41.7%, making it the largest fund in the company $158 million in assets under management.
The best-performing asset-gathering strategy for 2024, the Absolute Return Strategy, will close to new participants on February 1. With favorable U.S. legislative developments and growing corporate and governmental demand for cryptocurrency, Pythagoras forecasts a sustained Bitcoin bull market in 2025.
The incoming Trump administration, with its proposal on creating a national strategic Bitcoin reserve and appointing individuals favorable to our industry in key Executive Branch positions, is expected to be a major catalyst. With over 290 members of Congress who are pro-crypto, we anticipate that supportive legislation for the cryptocurrency industry will gain momentum. As the U.S. Congress explores the idea of a national strategic Bitcoin reserve, we expect some countries to attempt to front-run the U.S. in accumulating Bitcoin, should this initiative come to fruition.
Mitchell Dong, CEO of Pythagoras
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