Financial holding Bank of New York Mellon (BNY Mellon) with $ 2 trillion in assets under management explained the unsatisfactory performance of the BNY Mellon Opportunistic Small Cap Fund, including the lack of shares in MicroStrategy, which invests in bitcoin.
The BNY Mellon Opportunistic Small Cap Fund (DSCVX), focused on investing in small-cap stocks, grew 35% from September 1, 2020 to February 28, 2021. His baa n chmark – the Russell 2000 index – in this period gained 41.7%.
“The fund’s performance also suffered from the decision not to acquire shares of MicroStrategy, which rose in price in light of the decision to start investing in the first cryptocurrency, ” the document says.
According to Bitcoin Treasuries , at the time of writing, MicroStrategy has acquired 91,579 BTC, which is valued at nearly $ 5 billion – 2.2 times the purchase price. During the period under review, the company’s shares went up 5.2 times. As of April 30, they are estimated to be 12.7% lower compared to February 28. During this time, the price of bitcoin has grown by 18.5%.
BNY Mellon cited a position in Alamos Gold shares as another reason for DSCVX to lag behind the benchmark. It “worsened the dynamics amid weakening gold prices,” the document says.
According to ETF.com , 88 exchange-traded funds have invested in MicroStrategy shares with an average of 0.57% of their assets.
Recall that in February 2021, BNY Mellon announced the addition of a Bitcoin storage service to the list .
In March of this year, BNY Mellon invested in the custodian Fireblocks.