BXE Capital’s main strategy is to own “mission critical” infrastructure projects across different sectors. We believe that this core macro exposure is the best way to capture appreciation from the mass migration away from traditional markets into digital assets.
BXE Capital also utilizes other strategies that can potentially add alpha and reduce its correlation with the broader market. These include tactical long-only themes, a variety of yield-generating strategies, special situations with clear catalysts, positions designed to capture upside, and potential to minimize the tax burden.
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, Layer 1, smart contract protocols, Layer 2 protocols, decentralized finance networks, Web3 applications and other dominant sectors.
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” base line networks which we believe will power the digital economy buildout.
- We employ multiple yield generating strategies with an aim of reducing monthly management fees
- We seek to produce positive carry by providing liquidity, proof-of-stake, or other means of value to the digital asset ecosystem
- We believe that by seeking to produce yield, we may be able to reduce mark-to-market price volatility and help lessen the impact of portfolio drawdowns.
- BXE believes event-driven situations repeatedly arise in digital assets where investors can potentially earn attractive risk-adjusted returns
- Similar to spin-offs, activist involvement, and other special situations in traditional corporate finance, our goal in digital asset markets is to leverage a constant flow of tradable events
- BXE seeks to gain exposure to early stage investments which we believe offer the greatest potential for asymmetric risk/reward opportunities.
- Similar risk profile to venture capital investing, but with the ability to sell if our thesis changes
- When applicable, we seek to strategically manage tax liabilities for our LPs to help 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