“A cryptocurrency asset manager is mimicking the playbook of one of the industry’s most notable critics: Warren Buffett. Morgan Creek Digital is recreating Buffett’s famous $1 million wager pitting the performance of the S&P 500 against a group of hedge funds. But unlike the famous value-investor, Morgan Creek is betting against the S&P and placing its faith in the 10-year performance of cryptocurrencies…‘This is a combination of our outlook not only for the upside of cryptocurrencies but also the outlook on public equities,’ Pompliano [co-founder and partner at Morgan Creek Digital] told CNBC…Pompliano pointed to recent losses is in FANG stocks and other investor favorites…Still, the losses look minor compared to cryptocurrencies…Buffett, who recently called cryptocurrencies “rat poison squared,” took a $1 million bet against asset manager Protégé Partners in 2007. The billionaire investor wagered his own money that a passive investment in the S&P 500 would outperform a sample of five actively managed hedge funds. Buffett won that bet in 2017…Similarly, Morgan Creek partners are personally funding their side of the $1 million bet and said they would not be relying on money from the fund. They still need whoever takes the opposite side of their bet to agree, but Pompliano said the intention is for the winner to donate the proceeds to charity.”
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