As he works in a listed company, he also had a concentrated position in the shares of his company through the stock options. He has been gradually diversifying his exposure into private equity over the last decade and in early 2020, he decided to allocate a small exposure to crypto currency (bitcoin). To his amazement, the allocation to crypto has grown in value over this period by more than 3x.
His philosophy is that when the allocation to a certain asset class becomes over-exposed (or allocated), he will then re-adjust the exposure to his "ideal" portfolio construction. Today he has one third allocation to private equity and a 5% exposure to crypto.
I was intrigued and decided to map out my own allocation.
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