The Third State Edge
Markets are not efficient. They are emotional, reflexive, and prone to violent dislocations. Most investors fear this chaos; we were founded to embrace it.
Our thesis rests on four principles:
- Volatility is Alpha
- Volatility is not a nuisance to be hedged away — it is the purest source of opportunity.
- By studying cycles of fear and greed, we position ourselves to capture outsized returns when others retreat.
- Liquidity is the Real Scarcity
- Price is a reflection of liquidity, not fundamentals.
- Our strategies are designed to be liquid opportunists: we deploy capital where liquidity is surging and withdraw where it dries.
- Cross-Asset Agility
- Markets today are interconnected. A liquidity shock in crypto can ripple into equities; a derivatives squeeze can affect currency flows.
- We move seamlessly across asset classes — digital assets, derivatives, equities, early-stage ventures — to capture inefficiencies.
- Research-Driven Execution
- Labs feeds Capital and Ventures. Our research wing explores algorithmic trading, AI-driven signals, on-chain analytics, and global macro.
- No allocation is made without deep, data-driven conviction.
Core Strategies
- Crypto Liquidity Arbitrage: Capturing spreads and inefficiencies in fragmented digital asset markets.
- Event-Driven Volatility Plays: Deploying capital into earnings events, macro shocks, or regime changes.
- Derivatives & CFD Exposure: Leveraging structured instruments to amplify exposure during dislocations.
- Venture Building in Volatile Sectors: Incubating companies in high-risk, high-reward verticals (fintech, frontier tech, digital infrastructure).