Tapestry Capital

Pioneering distributed ledger
absolute return investment strategies
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Mission Statement

The accelerating adoption of blockchain-based coins, tokens, platforms and services will continue to coincide with short and medium-term asset mispricings, enabling asymmetric risk/reward opportunities. Tapestry Capital applies a proprietary blend of fundamental, technical, and quantitative analysis, combined with active risk-management and hedging strategies, to capitalize on these opportunities in pursuit of superior risk-adjusted returns within the emerging digital asset class.

Investment Process Overview

We believe that many strategies and best practices from the traditional world of investment management have yet to be deployed at scale in the nascent and illiquid digital asset marketplace. At the same time, we feel that generating consistent outperformance in such a volatile and emerging asset class requires a multi-disciplinary approach in order to tackle the continuously changing landscape of challenges. Please see below for a subset of the investment considerations employed within our strategies.

top-Down and Bottom-up Valuation

Deriving a fundamental value based on a combination of bottom-up analysis of coin & token-specific KPIs and top-down market-sizing work, while consistently keeping views updated and relevant. We are not afraid of holding contrarian views, but only when substantiated by differentiated research that is continuously tested against the fact pattern of reality.

identifying Catalyst paths

Keeping on top of the 24/7 high-noise, low-signal crypto news cycle requires dedication in order to identify opportunity that others are misidentifying or unwilling to take a view on. Examples include tracking forks and airdrops, staying updated on the regulatory landscape, and keeping on top of the social media sentiment (Twitter, Slack, Telegram etc.) as rumors occasionally morph into price-impactful news.

effective Hedging

Managing risk is paramount given the historical volatility and correlation in the space. However, proper coin selection and portfolio construction combining long, short, and lower-variance synthetic positions increases the odds of generating higher Sharpe compared to simple baseline indexing or mono-asset allocations, in both bull and bear markets.

Flexibility

We are strong enough to bend in the winds of volatility. This means continuously refreshing the pipeline of alpha-generative investment theses and analytical inputs that are expressed in the portfolio at any point in time. Our positions aren't simply inherited from yesterday's work, but must survive on their own merits independently from past performance.

The Origin Story

Our lives are rich tapestries of experiences, comprising peaks of triumph, moments of sorrow, and everything in between. While we each must walk our own paths, these individual experiences interlock to form a shared and immutable past, similar to not only the stories captured by the richly woven banners that now decorate museums all over world, but also the distributed ledgers that secure an ever-growing pool of assets, businesses, and services.

Financial assets, whether stocks, bonds, or the latest cryptocurrencies, are also stories first and foremost, even before they are discounted cashflows, yield calculations, or addressable market analyses. They are tales of people and personalities, decisions made and deferred, capital formation and flight, cooperation and competition, and ultimately, of success and failure.

Tapestry Capital is founded on the idea that through diligent analysis of, and the occasional tug on, the interwoven threads underpinning a prospective investment, differentiated insight can be gleaned and applied in the form of a coherent portfolio designed to deliver superior and repeatable returns in the burgeoning digital asset space.

A Call to Action

Over ten years ago, the modern digital asset movement started with a singular and enigmatic creator, Satoshi Nakamoto, giving to the public the gift of a nearly-complete protocol and cryptocurrency. Today, the promise of distributed ledger technologies has enabled engineers, tinkerers, visionaries, and dreamers on every continent to start building new systems and businesses in a permissionless and decentralized manner.

No one can predict with certainty what tomorrow will bring, but it's clear that this global movement continues to gain momentum in service of the goals of improving economic freedom, enabling trustless transparency, securing fundamental human rights, and reducing friction from rent-seeking intermediaries for anyone who wants to engage in productive work to feed their families, or to grow and protect their wealth.

While we are well on our way, it remains incredibly early in the tech and adoption curve and there's lots of work to do. Our own origins are an expression of the desire to focus more fully on what we truly believe will change the world for the better for everyone living in it. So we'll end with this: no matter your background, some project, business, or service in the growing ecosystem needs your professional experience, insight, capital, or even just passion. Let today be the day you get more involved, educated, or invested in the effort to bring about a more free future.