Long Only – Fundamental Long Only strategies employ investment processes based on extensive, thorough, and repeatable research designed to identify a fundamental case for value, growth, or appreciation in the network or token. Various quantitative and qualitative metrics and early crypto valuation techniques are used to select cryptoassets for investment that have the potential to accrue large amounts of value. These managers find assets they have high conviction in and buy and hold these assets for an identified investment period.
Long / Short – Fundamental Long / Short strategies similarly employ extensive research in the space, but instead of only focusing on buying and holding assets that managers believe will accrue value, they also short-sell assets that they believe are expected to decrease in value. Long / short strategies can have directional bias to the upside or downside, or can be more directionally neutral by focusing on relative value between various cryptoassets.
Multi-Strat – Fundamental Multi-Strat strategies are employed by managers that utilize multiple techniques to drive investment returns. Managers in this category often supplement their core fundamental approach with smaller allocations to quantitative strategies, or to options, derivatives, lending, staking, or other active network participation techniques to drive returns. Additionally, some managers invest in both the liquid and private / venture markets out of the same hedge fund structure in a hybrid fashion. We often see these venture investments placed into side pockets due to their generally illiquid nature for longer periods of time.