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Strategy
Market-Neutral Digital Macro Fund
The Edge DeFi Fund strategy is a market-neutral macro strategy utilizing decentralized finance (DeFi) protocols. The Fund’s main strategy is market-making in DeFi protocols while hedged for directional risk combined with opportunistic market-neutral macro trades in digital assets that includes funding rate basis trades, cross-chain arbitrage, and inverse funding rate trades.
Substantial part of the portfolio will be staked in DeFi liquidity pools that comprise of stablecoins and non-stable coins as well as algo hedging on centralized exchnages. Directional exposure is typically fully hedged with futures, option or using repo. Arbitrate trades are based on using futures and derivatives.
Individual positions are sized as a function of potential PnL, risks, liquidity, and correlation among positions.
– Typical number of positions: 5-20
– Typical position size: 3-25% of AUM
– Typical holding period of a position: 1-2 months
– Portfolio annual turnover: 10x
Embedded in portfolio construction, with continuous stress-testing, strict risk limits, and independent risk monitoring and controls. Hedges are typically implemented via buying protection on liquid crypto assets (in traditional markets with payments settled in USD outside of the digital space). In certain cases, cyber insurance is purchased against smart contract failures.
Performance*
| Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | YTD | Annua lized |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ‘20 | 1.9% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 5.8% | 22.9% |
| ‘21 | 1.9% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 5.8% | 22.9% |
| ‘22 | 1.9% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 5.8% | 22.9% |
| ‘23 | 1.9% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 5.8% | 22.9% |
| Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | YTD | Annua lized |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ‘20 | 1.9% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 5.8% | 22.9% |
| ‘21 | 1.9% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 5.8% | 22.9% |
| ‘22 | 1.9% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 5.8% | 22.9% |
| ‘23 | 1.9% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 5.8% | 22.9% |
| Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | YTD | Annua lized |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ‘20 | 1.9% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 5.8% | 22.9% |
| ‘21 | 1.9% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 5.8% | 22.9% |
| ‘22 | 1.9% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 5.8% | 22.9% |
| ‘23 | 1.9% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 5.8% | 22.9% |
| Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | YTD | Annua lized |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ‘20 | 1.9% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 5.8% | 22.9% |
| ‘21 | 1.9% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 5.8% | 22.9% |
| ‘22 | 1.9% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 5.8% | 22.9% |
| ‘23 | 1.9% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 0.7% | 5.8% | 22.9% |
* PAST RESULTS ARE NOT INDICATIVE OF FUTURE RESULTS. Performance figures for the Fund are net numbers and include the application of management fees, admin fees, fund accrued expenses and carry. The performance for some months has NOT been professionally audited nor confirmed by a fund administrator at the time of publication.
Performance figures for the Fund are net numbers and include the application of management fees, admin fees, fund accrued expenses and carry. The performance for some months has NOT been professionally audited nor confirmed by a fund administrator at the time of publication.
Net returns for BTC, ETH, MATIC (“Digital Assets” Share Classes) are simulation based on USD share class performance and converted to respective tokens per methodology of the Fund’s administrator. These in-kind subscriptions are treated by the Fund Administrator in the same way as they would be done for subscriptions in different FX. The Fund will calculate its NAV in USD and returns will be converted into digital assets at the end of the month by the Fund administrator for share classes. The fee structure and terms are the same as in the existing share classes. See Fund’s PPM for details.
About Edge Capital
Edge Capital is an innovative alternative investment manager focused on digital assets, blockchain and decentralized finance (DeFi) markets.
We apply a proprietary, fundamentally-driven approach to identifying investment opportunities that can deliver outsized returns, while providing strong diversification benefits to traditional investment portfolios
Edge is a team of native DeFi traders and researches that manages Edge DeFi Fund focused on liquid investment. Edge Team are active on-chain traders: 3-years of active DeFi usage: 150+ protocols and 15+ blockchains, 8000+ on-chain transactions and $3b in volume.
Multidisciplinary expertise in macro trading and analysis
DeFi First-Hand Experience: Edge staked in 150+ protocols and 20 chains, did 10k on-chain transactions and $3b in volume
Native DeFi traders and researchers
Exclusive expertise in DeFi and blockchain technologies
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