DAA Strategy Insights: Sustainable Crypto Selection

Our next series of DAA Manager Insights interviews covers the rebalancing strategies of ICONOMI DAA managers, providing unique insight into how they approach the structuring of their DAAs. Our first interview in this series is with Roger Wurzel of Sustainable Crypto Selection.

What triggered the decision to rebalance on August 6th? Do you see a new trend forming?

Along with our continuous market-price checks, we run an automated, time-dependent rolling average allocation model that includes the calculation and evaluation of historical volatility and correlations within the portfolio and the different asset classes. This model also analyzes the beta of each asset in correlation to the market and the comparable peer group.

You increased the weight of BTC in your DAA from 20% to 24% and substantially decreased the weight of LISK from 8% to 3%. You also decreased the weight of some other digital assets like ICON and DASH. Do you expect BTC dominance to grow in the coming months?

Over the last time period, we witnessed the dominance of BTC, which had a positive alpha against other tokens. This is why we decided to increase the weight of BTC in relation to underperforming assets like Lisk, ICON, and DASH.

You added Stellar for the first time, with a weight of 5%. What was the logic behind this decision? Do you think Stellar will be a top gainer in the second half of 2018?

We added Stellar to our portfolio based on extensive research and fundamental analysis. We believe they will be a leader in their business segment, which will bring substantial growth.

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