Low Fees Top Fundamentals is a strategy with minimum available fees and focus investments in projects with proven track record and high performance teams behind them. The strategy lowers risk in the high-risk crypto space by balancing a broad as possible portfolio while excluding too young projects with high risk of failing. The strategy is based on the logic that cherry picking and active trading is proven difficult even for the most seasoned investor. Research shows that what determines the long term ROI of a fund or strategy is ultimately the overall performance of the industry as a whole and the fees associated with fund management. Low Fees Top Fundamentals makes sure your profits remain your profits.
About the manager - Carl-Oscar Lawaczeck
With a degree from Gothenburg University in finance and economics and working as a commercial pilot, investing has been an interest of mine for more than 20 years. I have done all mistakes in the book but been sure not to repeat them. I study macro and micro cycles in the economy, and I know history repeats itself. History is our greatest teacher, knowledge is our greatest fortune teller. I've invested in everything from stock market, funds, real estate, start-ups to commodities and since 2015 in the crypto space. Next will be STOs. I will never become an expert, but understanding investment fundamentals has time again proven to generate value. I am the CEO of OceanSky, a project that aims at bringing back large-scale airships to commercial aviation.
You were active in many markets: equity, real estate, commodities, and now in crypto. Are there any interesting similarities that we can have in mind when investing in crypto?
Sure, investment fundamentals such as supply and demand, thresholds for market entry, company team and culture, management profiles etc. are still cornerstones when talking about the success of projects and companies, also in crypto. real estate and commodities, however, are more reliant on economic cycles, which crypto at some point also will be. However, crypto is more affected by it's development cycle at present than on macroeconomic cycles. This will in time change, I believe.
Portfolio construction is both science and art. What is your approach to portfolio construction? What impact do the fees have?
Portfolio theory is much overrated. It's common sense turned into complex math. There are 2 issues with portfolio theory. The first issue is that risk cannot be factorized easily. The other issue is that the most important underlying variable in portfolio theory is the development of the market as a whole. Which basically tells you to buy index funds if you believe in a bull market (on the assumption that you cannot exactly factorize your associated risks, which I mean is impossible unless you live in the Matrix). One more thing: volatility is often associated to risk, which I believe is a major flaw in many economic theories (but we can discuss that another time)
Risk is the art in portfolio structure. Noone can correctly assess the risk in companies or in markets. It's a soft touch of appreciating a billion inputs and factors affecting the future.
Therefore it's a combination of 2 things that generates performance in investing - 1. understanding the world and being lucky enough when doing risk assessment and 2. understanding the fundamentals that drives the potential success in a business or project
Both points are processes which costs should be minimised (the fees) in order to generate higher ROI.
How do you see current crypto trends? Do you think DeFi is already understandable to average Joe? Or do we need to see more simplistic solutions?
I think the next thing we will see is simplistic solutions. At least I hope we are there. DeFi will never be understandable to average Joe. Just as FIAT currencies are not understandable by 99% of the population. Not even my highest educated friends understand central bank fiscal policies unless they are super interested in the subject, but they can still do bank transfers, they don't have to understand the system of currencies. The only thing we can expect from people in general is to adopt simple, intuitive ways (once available to us) of transferring wealth without the risk of screwing something up. This is where I see ICONOMI can be trailblazing. You already have the infrastructure and the community. All you need to do is to tweak the technology.
Check the strategy here: https://www.iconomi.com/asset/LOWFEETOPFUNDAMENTALS