Freedom as an Asset Class (FAAC)

A Forming Investment Framework

Below is a high-level review of the logic underlying the implementation of a “Freedom as an Asset Class” (“FAAC”) strategy as well as some of my initial ideas on alternative investment ideas to consider.  

Let’s begin with a foundational premise of the framework:

Freedom is the principal value for all prosperity and human thriving.  If we seek a society in which people thrive, we optimize for freedom.

An investor who accepts the above statement as true might, therefore, consider an investment strategy that focuses on deploying capital into areas where freedom is strong and expanding.  Those would be the locations where the capital is most likely to thrive and deliver value to people and the investor alike.  For purposes of this analysis, let’s call this investment framework “Freedom as an Asset Class.”

I view the following spaces as the freest zones in the world:

  1. The Internet, including the developments in DEFI and Crypto,
  2. The Oceans, as they are unclaimed by any governments,
  3. Startup societies, seasteads and special economic zones, and
  4. The metaverse – online digital worlds

The FAAC will be one of the filters we use to sort investment ideas this summer.  What other freedom areas should be added to the list?

Here are some of my initial investment ideas that we might investigate:

  • What about a hedged crypto portfolio where we sell calls to generate yield on deposited tokens and then take a portion of the premiums and buy out of the money puts to limit the downside crypto risk.  The problem with this idea is that it would require a lot of trade management.  Is there a company that does this?
  • What about depositing tokens with a defi platform like Blockfi that pays a yield on deposited tokens?  The problem with this strategy is these places sometimes go bankrupt (I had tokens at Cred) or they might get locked up if regulations change.
  • Lets investigate real estate in emerging markets like Uzbekistan, Ukraine, Georgia, Egypt, Columbia, Mexico and more.
  • Perhaps we can consider stock investments in emerging markets.  I understand they can offer good value and yield.
  • Consider high rate bank deposits.  In 2018 I bought a 2 year CD from TBC Bank in Georgia paying 10.75%.  There is currency risk.  I gained in GEL terms but lost in dollar terms due to the change in the exchange rate.
  • What about buying farm land in a developing country.  What about a teak wood or Avocado farm?  These are probably not freedom zones.
  • What about real estate investments in special economic zones or startup societies.  I am particularly interested in the Prospera project in Honduras.
  • Lets explore how to invest in private companies and partnerships.
  • Lets explore possible investments in the crypto cruise ship – The Satoshi.
  • Who can help us in the Forex world?
  • Who is Galois Capital, what do they do and can they help?