Web3, Artificial Intelligence & Real Assets Tokenized
Web3, Artificial Intelligence and related investments
Web3 and AI are among the most important technologies of the future, and it’s so much more than just cryptocurrency. The decentralized solutions that Web3 offers will change lives in ways people will only grasp in the future. What we have seen thus far is just the tip of the iceberg — with so much more potential.
Web3 and Artificial Intelligence have the potential to change the landscape of all assets. Those who identify the right opportunities in the market will be able to capitalize on potentially highly profitable investments.
Eharo’s core strategy revolves around Web3, Artificial Intelligence and related investments with a long-term positive outlook. Our industry-leading research team rigorously assesses investments, striving to build a diversified portfolio to achieve the highest risk-adjusted returns over a five to ten-year time horizon.
We are bullish on Web3 and AI-related investments and assets as a whole, constantly searching for immense new opportunities and solutions that blockchain can provide. Over the last five years, this whole space has grown massively, and there’s no end in sight to that trend for the long term — even with the crypto winter of 2022.
Stable Growth while Protecting Against Downside Risk
Web3, Artificial Intelligence and related investments are a high-growth investment class. Highly specialized, focused managers are positioned to research, track and evaluate their performance compared to other investments. They will strive to protect these investments against downside risk and seize the opportunity to maximize returns. These investment managers have designed multiple unique diversifications in our portfolio to protect against downside risk, which is unique for investing in blockchain-related assets. The key is creating stable returns while protecting against risk.
Eharo’s investments are diversified by segment. Upon analyzing historical performance, we use loss rate data to adjust the risk profile of our portfolio for investors and reduce exposure to any industry bubble. Our investment vehicles offer protection through diversification by leveraging specialized expertise.
Getting Ahead of the Game
Eharo’s EVFFI is one of the first institutional grade investment funds in this space of its kind, allowing us to build knowledge for future market opportunities. Although the current versions of Web3, Artificial Intelligence and related technologies are predominantly limited to a small set of digital assets and applications, the groundwork is being laid for broader applicability.
Real Assets Tokenized
Real asset-backed investments with low-risk and historical performance provide solid returns. Well-chosen real assets that are tokenized can provide impressive returns with low risk levels compared to public markets. They are a great substitute for cash investments and bonds, which have stagnated in recent years due to global interest rates remaining low for an extended period. They can be a powerful tool to help investors boost returns, mitigate volatility, and diversify. Our strategy is to exploit market inefficiencies by focusing on non-traditional investment strategies.
Manage Volatility and Risk
Succeeding with tokenized real asset investments takes a value-driven style with a flexible approach to acquiring undervalued real assets. We hold the physical assets ourselves and do not just buy into the idea of it. Over time, tokenized real, physical assets investments are not as correlated to up-and-down movements in the general stock market. This diversification helps to manage volatility and risk. The consistent upward trend of real assets value over the last 20 years is solid proof.
Real assets have intrinsic value since they are actual objects. Unlike other investments, they do not rely on exchange or monetization. There is a low-to-moderate correlation between financial assets and shares. Investors can achieve strong benefits of diversification with tokenized real assets. Capital raising is outpacing deployment, which provides a solid environment for real assets to appreciate. In the coming decades, they are likely to continue outperforming traditional financial assets as a class. In addition, real assets generate long-term income with significant certainty.
Accessible and tradable
For investing, valuable, appreciating real/physical assets with decades of historical data can be brought into the blockchain space and tokenized. Tokenization makes them more accessible to a larger audience and liquid to trade on a 24/7 basis. In contrast, investment-worthy physical assets take longer to sell through a broker or verification, appraisal, and auction process.
Eharo Ltd (FRN 971072) is an appointed representative of Brooklands Fund Management Limited (FRN 757575) which is authorised and regulated by the Financial Conduct Authority.