Core Macro Exposure Tactical Long-Only Themes Yield Generation Special Situations Upside Capture Tax Optimization

Core Macro Exposure

  • Our macro strategy consists of our long-term, core holdings. We own dominant digital assets to capture appreciate from migration from traditional to digital assets
  • Exposure consists of yield-producing proof-of-stake tokens, smart contract protocol layers, store-of-value tokens, and medium of exchange tokens

Tactical Long-Only Themes

  • BXE has identified certain themes that we believe will produce network monetization or value realization in the intermediate term
  • We own the “picks and shovel” manufacturers that will power the digital infrastructure buildout

Yield Generation

  • We employ multiple yield generating strategies to offset our monthly management fees
  • Positive carry is produced by providing liquidity, proof-of-stake, or other means of value to the digital asset ecosystem
  • Portfolio yield helps to reduce mark-to-market price volatility and portfolio drawdowns

Special Situations

  • Event-driven situations repeatedly arise in digital assets where investors can earn attractive risk-adjusted returns
  • Similar to spin-offs, split-offs, activist involvement, and other special situations in traditional corporate finance, digital asset markets offer a constant flow of tradable events

Upside Capture

  • In a small subset of the portfolio, the Jagger Fund will make small, early investments in high-risk/high-reward projects
  • Similar risk profile to venture capital investing, but with the ability to sell if our thesis changes

Tax Optimization

  • We strategically manage tax liabilities for our LPs to minimize annual tax burden during periods of market contraction
  • BXE leverages long term capital gains tax rates whenever possible to reduce the overall burden of operational expenses for our LPs