Institutional Investors Part 2

Part
01
of six
Part
01

Family Offices Part 2

Out of the additional top 5 global institutional investors, only Spudy Family Office has invested in crypto and digital assets. Meeschaert Group has invested a total of $455.6 million into digital assets. All the information has been entered in the attached spreadsheet. 

Spudy Family Office

Stanhope Capital

  • Headquarters: London, United Kingdom
  • Type of Investor: Family Office
  • AUM in Crypto Assets: n/a 
  • Notes on Crypto Assets: Stanhope Capital finds crypto investments too risky, even though the government offers tax breaks over crypto investments in the UK. The CEO of Stanhope Capital explained: "There are some capital preservation investments with high-asset backing that also qualify for the same tax breaks while not offering the same benefits to the economy. It is these schemes that the Chancellor will target." [3]
  • AUM in Digital Assets: n/a 
  • Notes on Digital Assets: The CEO stated the following about the company's digital asset investment in 2018: "When you put tech savvy with the access and strategic understanding of the industry you have one of the most compelling investments I have seen over the last few years. That’s what drove us to make this investment."
For the full overview of all five global investors, please see the attached spreadsheet, rows 8-12.

RESEARCH STRATEGY

We began by going through each company's website to find information about their headquarters and the services they offer to clients. We also searched through Bloomberg and Crunchbase to understand the type of investors each company was.

Next, we checked each company's press release section to understand what their opinion is about cryptocurrency and digital assets. We were able to find that, from the top five investing companies, only Spudy Family Office has invested in crypto and digital assets. Meeschaert Group has invested only into digital assets. The other companies were still hesitant to enter the digital business because of the market infrastructure. Since three of the companies were not investing in neither crypto nor digital assets, and Meeschaert Group has no detailed AUM crypto assets, we just detailed their thoughts about investing into cryptocurrency and digital innovation.

In order to check that neither Stanhope Capital, ATAG Private & Corporate Services, nor 1875 Finance have their crypto or digital assets listed, we went through each company's AUM by looking into websites like Reuters, Investopedia and Cointelegraph. Unfortunately, information on the specific AUM for digital assets and cryptocurrency was not available. The only information that we could gather was some additional insights into each company's plans for future investments into digital and cryptocurrency.

We also looked into each company's annual reports — however, only Spudy had their annual report available. The rest of the groups are private and family owned. Therefore, they do no provide such details at all. As a last resort, we went through each company's SEC filings but information about AUM crypto and digital assets through this avenue was unavailable.
Part
02
of six
Part
02

Family Offices Part 1

Out of the top five global family investment firms, none of the firms have any investments or holdings in crypto assets or digital rights management. Still, some of them mention cryptocurrencies and digital rights management in their annual reports to their investors. More information on the topic has been presented in the attached spreadsheet (rows 3 to 7).

Bessemer Trust

  • Headquarter — New York City, NY
  • Total Assets — $66,000,000,000
  • Type of Firm — Family Offices
  • AUM in Crypto Assets — n/a
  • Notes on Crypto Assets: Bessemer has stated in a quarterly investment bulletin from Q2 2018 that although they can foresee a time in the future when cryptocurrencies may be part of countries' “formal money supply”, they are “wary of cryptocurrencies today and have no interest in holding them in Bessemer portfolios”. One of their biggest concerns is the lack of credible data as it is impossible to gauge the integrity of the system.
  • AUM in Digital Assets — n/a
  • Notes on Digital Assets — Bessemer has no mention of digital asset management in any of its documents or reports. They do reference the fiduciary care required for digital assets but only in the context of how beneficiaries and trustees of estates must manage things like email and social media accounts for deceased clients.

Stonehage Fleming

  • Headquarter — London, UK
  • Total Assets — $46,000,000,000
  • Type of Firm — Family Offices
  • AUM in Crypto Assets — n/a
  • Notes on Crypto Assets: While Stonehage Fleming does not provide any annual reports on the website, they are required by EU law (MiFID II) to publish their top five recipients of investment orders for the previous calendar year. After reviewing this document in depth, we can report that Stonehage Fleming has no investments in cryptocurrencies.
  • AUM in Digital Assets — n/a
  • Notes on Digital Assets — After reviewing the aforementioned document in depth, we can report that Stonehage Fleming has no investments in digital assets. The second document required according to UK regulations is the Capital Requirements Regulation Statement, and a thorough search of that document found no references to digital asset management of any kind.

Glenmede

  • Headquarter — Philadelphia, PA
  • Total Assets — $34,300,000,000
  • Type of Firm — Family Offices
  • AUM in Crypto Assets — n/a
  • Notes on Crypto Assets — In the 2018 annual report for Glenmede, an exhaustive list of all the investments made by Glenmede, sorted by category, shows no investment in any cryptocurrency companies. They believe that the technology is too new and that it is currently too volatile.
  • AUM in Digital Asset Management — n/a
  • Notes on Digital Assets — We reviewed the latest SEC filing for Comcast in an effort to determine whether they reported their digital rights separately, hoping to triangulate the information. However, while they have a film section in their report, it describes its activities as “produces, acquires, markets and distributes filmed entertainment worldwide”, and we cannot estimate how much of Glenmede’s investment is indirectly in digital rights management.

Oxford Financial Group

  • Headquarter — Chicago, IL
  • Total Assets — $20,000,000,000
  • Type of Firm — Family Offices
  • AUM in Crypto Assets — n/a
  • Notes on Crypto Assets — After searching through their website, all press releases and information brochures, SEC filings, and all news articles for the past year concerning the company, we can report that Oxford Financial Group has neither stated assets nor interest in cryptocurrencies.
  • AUM in Digital Asset Management — n/a
  • Notes on Digital Assets — The Oxford Financial Group has defined digital rights as the information that belongs to their clients in email and social media. “Digital assets” also include domain names, eBay accounts, and characters in virtual gaming, and they have no reported assets or earnings for DAM.

Silvercrest Asset Management

  • Headquarter — New York City, NY
  • Total Assets — $19,300,000,000
  • Type of Firm — Family Offices
  • AUM in Crypto Currency — n/a
  • Notes on Crypto Asset — In January 2018, Silvercrest produced an Economic Review and Investment Strategy report that described at a very high level what bitcoin was and how it had risen so quickly. They described the concept as “rooted in a deep skepticism towards banks and government printing presses, and a kind of techno-libertarian conviction that technology can produce an “honest coin” free from their manipulations”
  • AUM in Digital Asset Management — n/a
  • Notes on Digital Assets — An in-depth review of all of Silvercrest’s holdings showed no investments in digital rights management. We also did not find any evidence of investments or interests after searching their corporate website, as well as all press releases and news articles in the past two years.

Summary

  • As family investment firms who deal directly with the families and/or non-profits, it is not surprising that a review of their holdings showed all the firms to be conservative investment firms whose holdings are primarily in blue-chip stocks, largely in the financial sector, and also in some stable information technology firms like Alphabet, Microsoft, and Cisco.

Research Strategy

your research team applied the following research strategy:

We started by going through each company's website to determine how they communicated with their investors. We then searched each page on the websites looking for anything that might provide some financial information, including annual reports or financial statements. There was no financial information available, therefore, we checked if SEC were available. We found no financial references to crypto assets or digital rights in their respective financial reports.
Thereafter, we looked at the investment and economic reports sent by each company to its investors to identify any comments the companies were making concerning cryptocurrency, Bitcoin, or digital rights management. In the cases where the firm was discussing cryptocurrency, we referenced their comments in our findings. From there, we checked each company's press releases to see if they had made any public announcements concerning either of the categories being researched. In order to confirm our findings, we also searched for any news articles published in the last two years. Finally, we went to a website that lists all the individual holdings for a company. For those companies that had a listing on this site, we performed a deep dive, searching every investment and its category, to see if there was any investment in blockchain technology. However, we did not find any relevant information through this strategy. Therefore, we have presented all the publicly available information on the topic in this research report and in the attached spreadsheet.

Part
03
of six
Part
03

Crypto & Digital Asset Investments by Leading Institutional Investors

Of the five companies listed, Lone Pine Capital and Viking Investors have not made any comment regarding crypto or digital asset investments. Man Group has introduced cryptocurrencies in one of its programs, the AHL Evolution Frontier Programme, while BlackRock and AQR Capital Management are mostly interested in the blockchain technology behind cryptocurrencies. A comprehensive detailing of each company can be found on rows 8-12 of the attached spreadsheet.

BLACKROCK

  • In July 2018, the CEO of BlackRock stated that the company had delegated a team to study blockchain. They were more interested in exploring blockchain technologies rather than cryptocurrencies.
  • Most recently, in November 2019, the company CEO stated that they don’t plan on investing in cryptocurrency until the industry becomes “legitimate”.
  • Regarding fintech investments, last year, BlackRock invested $50 million in Acron, a fintech company that allows customers to make micro-investments. They have also acquired FutureAdvisor — a robo-advisory startup, and own part of Scalable Capital.

AQR Capital Management

MAN Group PLC

  • Back in 2017, Man Group was not investing in cryptocurrencies, however, they were interested in investing if CME Group decided to launch bitcoin futures.
  • The AHL Evolution Frontier Programme includes cryptocurrencies as a new market, as of 2018.

Research Strategy:

To gather comprehensive information on five hedge funds and their investments in crypto and digital assets, your research team extensively scoured through business databases such as Bloomberg to determine if the listed companies are cryptocurrency investors or are working towards venturing into crypto assets. We searched on the news and press release sections of the official websites of each company. We also searched for media publications and articles from credible sources such as Reuters, CNBC, Business Insider, Forbes, and others. Furthermore, we extended our research to online magazines that specifically focus on crypto and blockchain news and insights such as Coindesk and The Crypto Currency Magazine.
The extensive research yielded relevant information on some listed companies, while information on some companies was either limited or unavailable. However, we have provided what information we could find on the attached spreadsheet.
Part
04
of six
Part
04

Hedge Funds Part 1

Of the five listed companies, only JP Morgan Asset Management has plans to launch crypto assets division. Despite its co-founder’s personal interests in cryptocurrencies, Brevan Howard Asset Management has not made any comments on its plans to venture into crypto assets. BlueCrest Capital Management on the other hand is not interested in cryptocurrencies judging from the anti-crypto article that it shared on its Twitter page. A comprehensive detailing of each company can be found on rows 3-7, Hedge Fund tab of the attached spreadsheet.

Bridgewater Associates LP.

  • Headquartered in Westport, Connecticut USA, Bridgewater associates has $87.1 billion worth of assets under its management.
  • According to the founder of Bridgewater Associates Ray Dalio, the bitcoin cryptocurrency is in a bubble and is still subject to external forces that could cause its bursting. According to him, such cryptocurrencies do not allow many transactions and have no guaranteed returns.
  • Despite the company's stance on cryptocurrencies and digital assets like bitcoin, it has not made remarks on whether the company has plans to set-up a digital assets wing. According to the founder, the lack of guaranteed returns in digital assets is a risky affair for institutional investors.

J. P Morgan Asset Management

Och-Ziff Capital Management

  • Och-Ziff Capital Management has its headquarters in New York, USA and manages up to $47.1 billion worth of hedge funds.
  • Och-Ziff does not currently have any crypto assets under its management and has not indicated any plans of having the same soon. According to Wall Street news reports, Och-Ziff CFO Alexia Haas exited the company in favor of the crypto-based Coinbase.
  • There is no indication that Och-Ziff has any digital assets under its management. The company is still in the process of reinventing itself following some corruption-related scandals that hit it hard.

Breves Howard Asset Management

BlueCrest Capital Management

RESEARCH STRATEGY

In compiling information on the five listed hedge funds concerning their investments in crypto and digital assets, we scoured through each of the companies’ websites and databases such as Bloomberg. We also utilized news and press release sections of the official sites of each company. For additional information, we made use of media publications and articles from credible sources such as NewsBTC, Business Insider, Forbes, and others.
Through an extensive, the research team unearthed relevant information on the listed companies. While information on some companies was either limited or unavailable, we included our findings on rows 3-7 of the attached spreadsheet.
Part
05
of six
Part
05

Institutional Investors Part 3

Global institutional investors Legal & General Investment Management, JPMorgan Security Services, and Goldman Sachs all have no investments or assets under management in crypto assets and digital assets. Legal & General Investment Management and Goldman Sachs have made investments in fintech; JPMorgan Security Services and JPMorgan Chase invested billions of dollars worth of IT investments.

A) Legal & General Investment Management

1) Headquarters

2) investor type

3) AUM in Crypto Assets

  • n/a

4) Notes on Crypto Assets

  • Legal & General Investment Management (LGIM) has no current plans to enter the cryptocurrency world due to reasons such as highly volatile values, operational and security failures, prone to market manipulation, and liability gaps.

5) AUM in Digital Assets

  • n/a

6) Notes on Digital Assets

  • LGIM has started the "digital transformation" of their business by picking Bravura solutions as their technology provider.
  • However, Legal & General Investment Management (LGIM) does not have any plans to enter the digital asset market due to its weaknesses and unresolved issues, like operational failures and security problems, that makes it hard to replace the current payment systems.

7) other investments

  • Legal & General Investment Management recently invested in SalaryFinance, a London-based FinTech company that partners with employers and provides lending via the workplace of their partner clients.

B) JP Morgan Security Services

1) Headquarters

2) investor type

3) AUM in Crypto Assets

  • n/a

4) Notes on Crypto Assets

  • Analysts from JP Morgan Chase, the parent company of JP Morgan Security Services, predicted that cryptocurrency will further sink and that its values are still unproven.
  • JPMorgan Chase doesn't have any crypto assets under management. In fact, CEO Jamie Dimon has been very vocal of his opinion and stance regarding bitcoin and cryptocurrency. He even called bitcoin and digital currencies a "fraud" in 2017.
  • In spite of all that, they announced last February 2019 that they launched their very own centralized crypto asset called JPM Coin, making them the first US bank to do so.
  • However, the JPM Coin will only be used internally to facilitate settlements between institutional clients of JPMorgan Chase.

5) AUM in Digital Assets

  • n/a

6) Notes on Digital Assets

  • JPMorgan Chase doesn't have any digital assets under management but their official stance regarding cryptocurrency and digital assets is that they are supportive as long as the cryptocurrency assets are appropriately regulated and controlled. (s20)

7) other investments

  • Other investments of JPMorgan Chase include a $10.8 billion worth of tech investments to fuel their 50,000 technologists.
  • JPMorgan Chase also recently made investment partnerships with high-profile startups such as Roostify and OnDeck worth $600 million.

C) Goldman Sachs

1) Headquarters

2) investor type

3) AUM in Crypto Assets

  • n/a

4) Notes on Crypto Assets

  • Although they still don't have any assets under management in crypto assets, Goldman Sachs COO David Solomon mentioned recently that their group is still undecided with their cryptocurrency plans, but they're also exploring cryptocurrency trading derivatives due to increased clients interests.
  • Goldman Sachs CEO Lloyd Blankfein recently declared his positive stance regarding cryptocurrency, stating that digital coins adoption like Bitcoin could possibly happen in the near future.

5) AUM in Digital Assets

  • n/a

6) Notes on Digital Assets

  • Goldman Sachs currently doesn't have any assets under management in digital assets, but they recently started signing up clients for their crypto trading desk, which will aim to provide various digital asset products, due to increased client interests. However, they still cannot hold digital assets on client's behalf due to severe regulations.
  • According to Mary Rich, Goldman Sachs Vice President of Investment Strategy Group, they consider blockchain technology as the infrastructure that allows dissemination of value.

7) other investments

  • Goldman Sachs recently used alternative methods to jump in to the digital asset and cryptocurrency sectors by investing $15 million together with Galaxy Digital Ventures in a Series B funding round for cryptocurrency custodian BitGo.
  • Goldman Sachs was one of the investors in the technology startup firm Bud's $20 million fundraising.

Research Strategy:

We first researched about HQ locations and investor types of Legal & General Investment Management, JPMorgan Security Services, and Goldman Sachs by using company website sources and company insight platforms such as Crunchbase.

We then researched about the amount of assets under management that Legal & General Investment Management, JPMorgan Security Services, and Goldman Sachs have invested in crypto assets and digital assets by searching through their news website page, press releases, investors page, and annual reports. We also searched the funds they are offering for their institutional clients to find out if they currently have digital assets or crypto assets funds. However, we did not find any relevant information about their assets under management in crypto assets and digital assets. We only found other kinds of assets under management and funds they are offering for their clients. We also found contents that provided their stance regarding digital assets and crypto assets.

We then researched using trusted media websites such as PRNewswire and Business Wire for any information regarding assets under management by the above-mentioned companies. However, we did not find any information about their assets under management in crypto and digital assets. We only found press releases about their other investments and their stance regarding cryptocurrency and digital assets.

After that, we used industry sources such as FTAdviser, International Investment, Bloomberg, Palm Beach Group, Coin Telegraph, and PYMNTS.com, among others, and also media sources such as Reuters, Financial Times, Forbes, CCN, and APNews to try to find any news and industry publications about assets under management of the 3 companies in crypto assets and digital assets. However, we still did not find any relevant information of the amount of assets under management in crypto assets and digital assets. We only found other investments of the companies, and also their stance regarding cryptocurrency, bitcoins, and digital assets. Because of that, we, therefore, concluded that there are no pre-compiled information regarding the amount of assets under management of Legal & General Investment Management, JPMorgan Security Services, and Goldman Sachs in crypto assets and digital assets.


Part
06
of six
Part
06

Institutional Investors Part 2

JP Asset Management, PIMCO, Amundi Asset Investment, and Prudential Financial Inc. do not have crypto assets and digital assets under their management. JP Morgan Asset Management in February announced its intentions to form a crypto assets division. Amundi Asset Management and Prudential Financial Inc. have shown interest in the opportunities that come with cryptocurrencies. PIMCO, on the other hand, has not indicated confidence in crypto assets. More details of the companies mentioned above have been entered into rows 8-11 of the attached spreadsheet.

JP Morgan Asset Management

  • Headquarters: New York, USA.
  • Type of Investor: Hedge Fund
  • AUM in Crypto Assets: N/A
  • Notes on Crypto Assets: In February 2019, J. P Morgan announced that it would be launching its crypto asset section later the same month. Following the announcement, the head of the Blockchain division at J. P Morgan cited the opportunities in cryptocurrencies as a new trend.
  • AUM in Digital Assets: N/A
  • Notes on Digital Assets: Currently, J. P Morgan Asset Management does not have any digital assets under its management. With the launch of the crypto assets division, the company will form a digital asset division even as it expects to launch the so-called “JPM Coin.”

PIMCO

  • Headquarters: California, USA.
  • Type of Investor: Hedge Fund
  • AUM in Crypto Assets: N/A
  • Notes on Crypto Assets: According to PIMCO's market strategist and portfolio manager Tony Crescenzi, valuing cryptocurrencies is challenging as there is no intrinsic value to something like bitcoin. In an interview with Bloomberg Television, he said that he would choose bonds over crypto assets. As such, there is no indication that the asset manager is planning on having a crypto assets division.
  • AUM in Digital Assets: N/A
  • Notes on Digital Assets: PIMCO has not indicated that it is planning to have a digital assets' division in the future. Even so, sentiments of Tony Crescenzi in a Bloomberg Television interview (market strategist and portfolio manager at PIMCO) point to lack of confidence in digital assets like bitcoin.

Amundi Asset Management

  • Headquarters: Paris, France.
  • Type of Investor: Hedge Fund
  • AUM in Crypto Assets: N/A
  • Notes on Crypto Assets: As a company, Amundi does not have any crypto assets under its management currently. Even so, a company, To-bam, in which Amundi has minority shares created Europe's first Bitcoin Fund for interested and qualified institutional investors interested in cryptocurrencies. It points to Amundi's possible support of crypto assets.
  • AUM in Digital Assets: N/A
  • Notes on Digital Assets: Amundi has not made any stances on its plans to have a digital assets' management division. In terms of its digital transformation strategy, the company has fully digitized the Amundi Academy. The now customizable training platform includes certification modules on asset allocation and fund selection.

Prudential Financial Inc.

YOUR RESEARCH TEAM applied the following strategy

In finding the information on JP Asset Management, PIMCO, Amundi Asset Investment, and Prudential Financial Inc., we began by going through each of the company's website to find information about their headquarters and their service offerings. To find additional on the type of investors, we utilized Bloomberg where we could not find such information from the companies’ primary websites.

We also utilized each company's press release pages to get insights on their opinion is about cryptocurrency and digital assets. We could not find information from any of the press pages. We also checked through the SEC filings and annual reports. We did not find information except in the case of Amundi Asset Management and Prudential Financial Inc. from which we found additional information from the business report and outlook report respectively. For the rest of the companies, we were able to retrieve relevant information from alternative sites like Investment Europe, Bitcoin Exchange Guide, and NewsBTC among others.
Sources
Sources

From Part 03
From Part 05