“This Crypto Fund Outperformed Bitcoin’s 121% Price Jump in 2024 with Remarkable Results.”

The Pythagoras Alpha Long Biased Strategy presents a dynamic investment model, combining a core Bitcoin (BTC) position with two complementary, uncorrelated strategies to outperform traditional buy-and-hold investment approaches.

In 2024, Bitcoin, the dominant cryptocurrency by market cap, experienced a 121% surge, surpassing the $100,000 mark. However, this performance pales in comparison to the results of Pythagoras Investment Management’s Alpha Long Biased Strategy, which achieved a striking 204% return during the same period.

Pythagoras reports that the Alpha Long Biased Strategy achieved a 3x return in 2024, significantly outpacing the 2x return that typical Bitcoin investors would have realized by holding their assets. The fund operates on a performance-based incentive structure, charging fees only when it surpasses Bitcoin’s return. The strategy combines a base Bitcoin position to capitalize on long-term appreciation with two distinct, uncorrelated strategies designed to generate additional alpha.

The first component is a momentum strategy, driven by machine learning and pattern recognition tools, which dynamically adjusts market exposure to capture short-term price movements. The second component, a long-short market selection strategy, uses a proprietary AI-powered forecasting model to build a dollar-neutral portfolio. This strategy takes long positions in cryptocurrencies with strong return potential while shorting those expected to underperform.

The three components of the fund are calibrated for optimal performance relative to Bitcoin, ensuring the strategy is positioned to deliver higher returns.

Despite its standout performance, the Alpha Long Biased Strategy remains Pythagoras’ smallest fund, with $7 million in assets under management (AUM). The fund experienced a minor 2% drawdown in December, coinciding with Bitcoin’s drop from a peak of over $108,000 to about $93,000 by year’s end.

Pythagoras’ other funds showed impressive results as well. The Arbitrage Strategy achieved a 3% return in December, finishing the year with an 18% overall gain and $45 million in AUM. The Quant Long Short Fund delivered a 30% return in 2024, managing $23 million, while the Absolute Return Strategy posted an impressive 41.7% return, attracting $158 million in assets. Pythagoras has announced that the Absolute Return Strategy will close to new investors on February 1, 2025.

Thanks to the bullish market trends, the combined AUM of all four funds surged to over $230 million by the end of 2024, up from $80 million in 2023.

Looking ahead, Pythagoras maintains a bullish outlook for the cryptocurrency market, bolstered by positive regulatory developments in the U.S. and growing corporate interest in Bitcoin. Mitchell Dong, CEO of Pythagoras, highlighted that the incoming Trump administration’s plan to create a national Bitcoin reserve, coupled with pro-crypto leaders being appointed to key positions, could be a major catalyst for the sector. Dong also noted that with over 290 pro-crypto members of Congress, the prospects for favorable cryptocurrency legislation are strong.

As the idea of a national Bitcoin reserve gains traction, Dong suggested that other countries might look to accumulate Bitcoin in advance, while corporations, following in the footsteps of MicroStrategy, may increasingly adopt Bitcoin as part of their treasury strategy.

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