Arch's balanced portfolio or ABAL is carefully designed to offer investors a well-balanced exposure to USD yield-generating strategies as well as the dynamic Crypto and Web3 space. This portfolio seeks to strike a balance between participating in the innovative crypto and Web3 worlds while concentrating its positions on the largest and more established projects.
The portfolio allocation of ABAL is divided as follows:
50% allocated to yield-earning protocols on stablecoins, 25% to yield-earning protocols on Ethereum, and the remaining 25% to major cryptocurrencies like Bitcoin and prominent Web3 protocol tokens. This strategic allocation allows investors to benefit from USD yield-generating strategies while also capitalizing on the potential growth opportunities in the Crypto and Web3 industry.
How do we construct such a well-balanced portfolio?
To construct ABAL, we employ the methodology of subset resampling. By utilizing this technique, we enhance the efficiency of the mean-variance optimization process, enabling us to identify the most efficient portfolios with the highest expected returns for a given level of risk. Through subset resampling, we strive to construct a balanced portfolio that maximizes returns while managing risk effectively.
Rebalancing📊
To ensure ABAL remains aligned with market conditions and performance, regular rebalancing is conducted on a quarterly basis. This proactive approach enables us to assess the portfolio's performance and make necessary adjustments to the asset allocation. By adapting to changing market dynamics, we aim to capture new opportunities and optimize the performance of ABAL effectively.