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Breaking the Old Playbook: Why MCC’s Approach Outperforms the Mutual Fund Era

  • Aug 11
  • 2 min read
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Date: August 8, 2025


The traditional 60/40 mutual fund & bond portfolio model has failed in the new macro regime. Bonds no longer hedge equity drawdowns effectively, and mutual funds lag in both performance and agility. In an age of AI-driven markets, 24/7 crypto trading, and global liquidity shocks, old money management tools are too slow, too rigid, and too fee-heavy to compete.


At MCC, we’re replacing outdated “buy-and-forget” structures with a modern, asymmetric, multi-asset strategy built for speed, yield, and conviction.


1. Portfolio Positioning & Performance
  • Total Portfolio Return (YTD Weighted): +61.8%
  • Weekly Gain (Aug 1 → Aug 8): +5.6%
  • Current Allocation:
    • 33.6% Cash & Income – earning 4.1%–15% APY via high-grade yield instruments & private credit lending.
    • 44.4% Equities – high-beta growth (IBIT, TQQQ, MSTR), gold hedge (GLD), and yield ETFs (JEPQ, GLDI).
    • 22.0% Crypto – concentrated in BTC, SOL, ADA, and ETH for asymmetric upside.


2. Our Hedging Strategy – Defense & Offense in One Portfolio
Instead of relying on bonds or broad mutual funds as “defense,” we deploy a three-layer

hedge system:
  1. Liquidity Buffer (Cash & Yield) – 30–40% of the portfolio sits in income-producing accounts, ready for rapid deployment into dislocations.
  2. Non-Correlated Assets – Gold (GLD) and select yield ETFs act as volatility dampeners without capping upside.
  3. Strategic Beta Reduction – Dynamic trimming of crypto & leverage during parabolic runs (e.g., post-July +126.5% peak) to lock in gains and lower portfolio VAR (Value at Risk).

This hybrid approach means we can play offense when markets break out and go full defense without exiting to underperforming safe havens.


3. New Money Management vs. Old Money Thinking
Old Model (Mutual Funds / Bonds)
MCC Modern Model
60/40 allocation locked for decades
Dynamic allocations weekly / daily
Bonds as hedge despite rate volatility
Cash/yield + gold + tactical beta hedges
6–12 month rebalancing cycles
Intraday & weekly tactical rotations
Average annual return 6–8%
Target asymmetric returns (50%+ in 12 months)
Fees & slow execution
Low friction, instant rebalancing
Bottom line: The old system is built for capital preservation in slow-moving markets. Our system is built for capital multiplication in high-volatility, high-liquidity global markets.


4. Key Changes This Week (Aug 1 → Aug 8)
  • Increased Cash Allocation to 33.6%, all in yield-bearing accounts (4.1%–15%).
  • Trimmed Crypto from 40.5% → 22.0% to preserve July’s outsized gains.
  • Added ETHA ETF for on-chain exposure with liquidity and equity correlation benefits.
  • Shifted Defensive Weight – Reduced GLD allocation, added income ETFs (JEPQ, GLDI).
  • Maintained Core Convictions – BTC, SOL, and ADA remain core asymmetric bets.

5. Forward Outlook
  • Crypto: Expect consolidation into Q4, with SOL/ADA momentum intact and ETH primed for breakout on ETF flows.
  • Equities: AI & tech leadership to continue while rates remain soft; TQQQ and MSTR remain tactical vehicles.
  • Yield: Cash remains a strategic weapon, earning income while waiting for high-conviction pullbacks.
  • Macro: Liquidity tailwinds still strong, but positioning remains crowded — patience will pay for those with dry powder.

Summary: Manhattan Crypto Capital is not just managing a portfolio — we’re building a new era capital strategy. One that rejects the slow, fee-heavy, outdated mutual fund model and replaces it with precision-weighted, yield-powered, high-conviction positioning.


"In today’s markets, the edge belongs to those who can rotate faster, hedge smarter, and hold the courage of their convictions." - Zaid Khan-


Zaid Khan NYC Team



 
 
 

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