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Mount Group’s Year in Review: Insights and Outlook for 2025
This article is brought to you by our sponsor, Mount Group. This article does not constitute financial advice. Sponsored articles are not endorsed by TechFinitive’s editorial team.
As we all know, January is traditionally a time to reflect on the past year and set new goals for the future. Anar Murtuzaev, the CEO of the Mount Group, a family office with a diverse portfolio, shared his analysis of the previous year and outlined his views and plans for the new year 2025.
Navigating high interest rates in 2025
Since 2022, we’ve been in a cycle of consistently high interest rates, reaching levels not seen since 2008. Most of the marktet players anticipate rate cuts, fueled by optimism about the economy. This belief likely comes from the idea that such high rates can’t last. However, history tells us otherwise – long periods of high interest rates have happened before, such as in the 1990s and mid-2000s before the market crash.
While there’s hope for lower rates, we do not see any clear signs that this will happen anytime soon.
In 2024, we as the Mount Group took advantage of the high-rate environment by making strategic investments in debt instruments. By carefully selecting opportunities, our investment managers kept default risks very low, with an average Loan-to-Value (LtV) ratio of 57%. For comparison, the median LtV for UK mortgages was 69.5%. This approach limited risks and allowed our fixed-income portfolio to deliver strong returns of about 14% in 2024.
As we look to 2025, we expect interest rates to stay high. However, we don’t plan to take on more exposure. Instead, we’ll focus on managing our debt portfolios to keep delivering solid results. If you’re an investor or work with a business, plan your year carefully. Managing debt effectively can help maintain strong financial performance without taking on more risk.
Investing not in, but with crypto currencies
Cryptocurrencies have been a hot topic in recent years, and we see them as an important asset class worth talking about. Right now, many market players are still unsure about crypto because of the lack of clear regulations. But there’s a growing trend of cryptocurrencies being recognized in more markets and countries.
That said, cryptocurrencies are still very risky. They’re highly volatile, don’t have clear everyday uses, and aren’t backed by tangible value or guaranteed as a way to pay for things. For instance, in 2024, El Salvador – once known for adopting Bitcoin as legal tender – stopped requiring businesses to accept Bitcoin and no longer allowed it for tax payments.
Even with these challenges, we believe the crypto market will continue to grow, driven by advances in technology and changes in U.S. policies. Instead of investing directly in cryptocurrencies, we’ve chosen to focus on blockchain technology and projects that build the infrastructure for the industry. In 2024, we invested in Arkis, a digital asset prime broker supported by investors like Psalion, Roosh Ventures, and Gumi Cryptos.
We’ve also started building a loan portfolio through their platform, which gives us access to returns similar to those from cryptocurrencies – much higher than traditional fiat investments – while keeping our risk at fiat levels.
So, your takeaway could be that the crypto market’s growth is often influenced by technological advancements and political developments. Diversifying investments into blockchain technology and infrastructure projects can provide a more stable and strategic approach compared to directly investing in volatile cryptocurrencies.
How technology/AI can transform traditional industries
Even though technology can help reduce costs and improve efficiency, some industries are slow to adopt it. These traditional sectors offer big opportunities for improvement, as better technology could boost profits and make things work more smoothly. But because these industries tend to be cautious and don’t feel an urgent need to change, it can be hard for new businesses to break in. We’ve seen many start-ups with great ideas spend a lot on marketing but still fail to attract enough customers. One way these companies can succeed is through buyouts or acquisitions.
If you are a business owner struggling to break into traditional sectors, consider acquisitions or partnerships with earlier established players. Acquiring an already existing customer base can provide a life saving foothold, making it easier to introduce new technology and drive growth.
Looking to the future, advances in AI are expected to create even more chances to shake up traditional industries. At Mount Group, we’re getting ready to take on projects that use technology to solve problems, help industries grow, and add exciting opportunities to our portfolio.
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