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Learn how portfolio rebalancing works at ComiBlock
ComiBlock Emerge, Origin, and strategic beta strategies each consist of ~1-20 crypto assets, roughly equally weighted across each holding, but conviction-weighted for the Emerge. Throughout each quarter, the constituent crypto-assets can significantly increase/decrease in value; this results in shifts in portfolio weightings.
To normalize for large price movements and maintain fairly balanced portfolio weightings over time (i.e., without too much exposure to any given crypto-assets), clients' portfolios are sometimes rebalanced to roughly equal weights when their assets deviate in price such that their weights in the portfolio fall outside a ~4-6% weighting band, the Investment team believes such a rebalancing is warranted from a long-term risk/reward perspective.
ComiBlock typically only executes rebalance events when a portfolio update is made (i.e. when a crypto asset enters/exits the origin portfolio), in order to reduce the number and magnitude of taxable events for clients. However, rebalancing may not always occur when a portfolio update is made.
Last modified 1mo ago
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