We offer our investors a continuous short-term exposure to the crypto market by employing active strategies that exploit existing market inefficiencies and are proven to perform well historically. The strategies ensure episodic participation in the market.
Major part of the portfolio is related to event trading, arbitrage and momentum. These strategies do not passively follow up market trend.
Arbitrage and event trading strategies have no market risk. Participation is episodic.
The Fund has back-tested various active and passive strategies. We have only chosen the techniques that have higher risk-reward ratios than the market.
Profits and losses are calculated in terms of fiat. Prolonged holding of coins is usually hedged and market risk is eliminated.
Strategies that we use are independent from the market fluctuations. Exorior Capital and crypto market perform in an uncorrelated manner to each other. By combining momentum, event trading and arbitrage strategies, the fund provides better risk-reward ratio than long only strategies.
Momentum aims to earn return on the continuance of the trends in specific coins. The main reasons why those trends appear are initial investors' under-reaction and delayed over reaction applied to informational dissemination.
Event trading is based on the fact that prices do not instantly reflect new public information. First movers are rewarded for their quickness and correct evaluation of the news.
Arbitrage is known as an opportunity to capitalize on differences in prices between markets. Imbalances in supply and demand creates unprecedented arbitrage opportunities between various exchanges.
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