Portfolio Review #1

Hey guys,

we are happy to publish our first portfolio review.

Before we get started, we would like to remind you, that this review and activity is not financial advice; it is for informational purposes only. And coins mentioned in the review are no indication of our current holdings or opinions towards certain coins.

As our first portfolio review, we decided to look at a portfolio with a value of $9057.72 currently holding 15 tokens. The person would like to position himself for a fast growing portfolio for the bull run and therefore is willing to take additional risk.

Our approach was as followed, we judged the portfolio on its holdings, diversifications and its capital allocation. Additionally we took into consideration the risk level of the individual.

The structure of the review will look as followed:

1. Portfolio Analysis

a. Portfolio Capital Allocation

b. Portfolio Category Capital Allocation

2. Strategy alignment

3. Opportunity for change

So let’s get started:

Portfolio Analysis

Capital Allocation

The portfolio currently holds 15 tokens with the following allocation:

$BTC 48.6% $KUJI 8.67% $RVF 8.21% $HILO 5.17% $PEAR 3.74% $HMX 3.42% $OLAS 3.14% $DUBBZ 2.61% $0X0 2.55% $SS 1.21% $CBY 5.24% $HERA 1.78% $CROWN 2.66% $LP 1.08% $TENET 1.91%

So let’s first talk about the value allocation, considering his strategy, of trying to achieve a fast growing portfolio, the allocation of 48.6% $BTC does not align with the strategy as Bitcoin often gets outperformed by other large-low caps. This allows the first possibility of readjustment to the portfolio.

While we agree, that smaller portfolios should allocate most of their holdings into mid-low caps to create the opportunity of growth. This portfolio, allocates almost 90% of its holdings into low caps (excluding $BTC allocation) increasing the risk of the holdings drastically. Therefore, we are missing the allocation into some lower risk large caps, thus creating the second possibility.

Additionally, we can see that holdings like $LP, $TENET and $SS are only between 1%-2%, while diversification is key, being too diversified can also have its repercussion, especially with smaller holding amounts. Considering, that these values are around $100, the $ETH fees in a bull market can eliminate most of the profits generated.

Portfolio Category Capital Allocation

This was a quick take on the allocation, disregarding any other categories, therefore lets us now dive into the portfolio, when separated into categories.

As seen in the screenshots below, the portfolio is split into #Bitcoin, #DeFi, #DEX, #GamblFi, #AI, #RWA, #GameFi, #LSDFi.

For clarification purposes, we categorized $CROWN as a #GameFi token for now, as the betting aspect is not yet too prominent on the platform itself.

Having this out of the way, lets discuss the two charts, the chart on the left, highlights the coins itself, not considering the allocated capital. The chart on the right is adjusted to the allocated capital. Ignoring $BTC for now, as we have made this point clear in the previous paragraph, the allocation of the portfolio is quite large when it comes to #DEX and #Defi, while #GameFi is underrepresented in our opinion, as $CROWN doesn’t really represent that category. Therefore, creating the opportunity, to adjust the capital allocation with regards to holding categories.

Strategy Alignment

As slightly touched on above, the current strategy and the willingness to take risks, does not align with the portfolio allocation shown above. This is because, during a bull run, most altcoins outperform $BTC itself, that’s why mainly large portfolios allocate a significant portion to the token, as they are lowering their own risk exposure. But having in mind the current proposed strategy, a new allocation should be considered.

Opportunity for change

1. As mentioned multiple times above, the first point to consider is the capital allocation of almost 50% of $BTC in the portfolio, as this does not align to the risk level the person is willing to take and therefore also not with the strategy.

2. Considering the opportunity in point 1, we can re allocate the capital from $BTC into other large-mid caps such as $INJ or others as these are currently underrepresented in the portfolio.

3. Thirdly the allocations of amounts around $100 should be considered and looked at, and perhaps allocated to already existing holdings, as these are currently, not having a significant impact on the portfolio. Additionally, considering the impact of possible bull run $ETH fees, profits can significantly be reduced.

4. The fourth and last point brings us to the category allocation, as previously mentioned, we are missing some exposure into the #GameFi sector as this is not represented in any major holding. (Considering $crown is split between 2 categories)

And remember, these opportunities don’t have to be implemented instantly, you can slowly add on dips, adjust your holdings after conducting further research etc.

This was our first portfolio review, we hope you enjoyed the format. And please remember, that this review and activity is not financial advice; it is for informational purposes only. And coins mentioned in the review are no indication of our current holdings or opinions towards certain coins.

If you would like to be part in the second review make sure to follow @cryptojohnnyfap and @Disguycrypto and sign up through the following form link:

https://forms.gle/Wy2ewt35xzZtdJav8