PORTFOLIO

What is the Jagger Fund?

The Jagger Fund is BXE Capital’s flagship fund launched in July 2017.

The Jagger Fund’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.

The fund 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 tax-optimization strategies.

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