US Police Pension Fund Invests In Cryptocurrency Farming Fairfax County

Police Pension Investment Director Katherine Molnar told the Milken Institute conference that the system is considering investing in two cryptocurrency investment funds within three weeks.

Molnar noted that the Fairfax pension system has already invested seven times in two funds, including venture capital funds and a structure that contains illiquid tokens at an early stage and liquid tokens at a later stage.

Now they intend to invest in investment funds that specialize in various strategies for using cryptocurrencies, including farming, basic trading and inter-exchange arbitrage. Molnar believes that the system is ready to use new strategies to generate income, which can only be provided by new cryptocurrency tools.

“Instead of being intimidated by the volatility of this asset class, we are trying to find a context in which to exploit it. Volatility is very good for different financial strategies,” notes Molnar.

The two new hedge funds the system works with are using offline farming strategies, according to the chairman of the pension system.

Income farming generates profits from 4% to 1,000% by placing or lending assets on decentralized exchanges. Molnar said that she sees profitable farming as an alternative to fixed income and an opportunity to get higher profits than from investments in traditional assets, which are critically dependent on the economic situation.

“We use farming as a high yield substitute with an expected return of 9-11%. This is slightly higher than fixed income,” Molnar said. In some cases, she said, the pension fund has already negotiated with hedge fund managers for a wider distribution of investments to generate higher returns.