Deriving a fundamental value based on a combination of bottom-up analysis of coin & token-specific KPIs and top-down market-sizing work, while consistently keeping views updated and relevant. We are not afraid of holding contrarian views, but only when substantiated by differentiated research that is continuously tested against the fact pattern of reality.
Keeping on top of the 24/7 high-noise, low-signal crypto news cycle requires dedication in order to identify opportunity that others are misidentifying or unwilling to take a view on. Examples include tracking forks and airdrops, staying updated on the regulatory landscape, and keeping on top of the social media sentiment (Twitter, Slack, Telegram etc.) as rumors occasionally morph into price-impactful news.
Managing risk is paramount given the historical volatility and correlation in the space. However, proper coin selection and portfolio construction combining long, short, and lower-variance synthetic positions increases the odds of generating higher Sharpe compared to simple baseline indexing or mono-asset allocations, in both bull and bear markets.
We are strong enough to bend in the winds of volatility. This means continuously refreshing the pipeline of alpha-generative investment theses and analytical inputs that are expressed in the portfolio at any point in time. Our positions aren't simply inherited from yesterday's work, but must survive on their own merits independently from past performance.