Digital Asset Investment Strategies

Investment Strategy

The fund invests in a basket of liquid tokens and venture investments. We conduct research and analysis to identify assets that have demonstrated user adoption and growth characteristics. The investment approach centers on long-term conviction positions based on fundamental analysis.

Evaluation Methodology

We conduct fundamental and on-chain research using our team's expertise in the crypto market. Our research process includes:

• On-chain market intelligence and quantitative analysis
• In-house AI and machine learning models for pattern recognition and market analysis
• Weekly market reports from institutional sources including Coinbase and FalconX
• Active participation in project ecosystems and communities
• Evaluation of developer communities and user engagement

Research Tools

Custody & Security

Assets are stored through a combination of offline hardware wallets and Coinbase Custody, a qualified custodian. Coinbase Custody maintains an insurance policy covering losses from criminal activity, physical damage, and errors or omissions, underwritten by Lloyd's of London. We work with top-tier institutional exchanges.

Fund Structure

The BlockArrow Opportunity Fund is a liquid fund of funds that allocates capital across complementary strategies. The portfolio currently includes 8 institutional-grade crypto hedge funds across 3 investment strategies: Market Neutral, Mixed Strategy, and Long Bias.

Investment Strategies

Market Neutral: Funds that pursue yield by capitalizing on market inefficiencies, often using advanced AI and machine learning techniques to identify and execute trades at scale. These strategies have minimal correlation to underlying crypto assets, deriving returns from structural inefficiencies, arbitrage, and market dislocations.

Mixed Strategy: Managers combining directional views with relative value, arbitrage, and volatility strategies to navigate market shifts. These approaches blend multiple frameworks to manage exposure across varying market conditions.

Long Bias: Fundamental investors focused on long-term value creation in digital assets. These managers take concentrated positions based on fundamental analysis and thesis development.

In-House Technology

BlockArrow utilizes proprietary AI and data analytics tools to support manager evaluation, portfolio monitoring, and risk assessment. Our technology infrastructure enables systematic analysis of fund performance, correlation dynamics, and market conditions to inform allocation decisions.

Manager Selection Criteria

• Minimum 2+ years of verifiable performance history
• Evaluation of Sharpe ratio, Sortino ratio, and historical drawdowns
• Assessment of strategy edge and scalability
• Operational infrastructure review (custody, auditing, compliance)
• Track record through market cycles including major events
• Audited financial statements from reputable audit firms

Portfolio Management

The fund maintains the ability to rebalance allocations. While the portfolio begins with equal-weighted allocations, we retain discretion to adjust weights based on market conditions, performance divergence, or changes in manager thesis. Rebalancing is intended as a disciplined tool to optimize portfolio behavior as markets evolve.

Fees

1% management fee. 10% annual performance fee, subject to a high water mark.

Service Providers