The Interview - Crypto | Featuring Chris Sullivan and Raoul Pal

TL;DR

An experienced asset manager discusses the transition from traditional finance to crypto, the unique challenges and opportunities in the industry, and the strategies utilized by his firm.

Transcript

chris great to get you back on real vision it's been a while i don't think you and i have actually sat down and talked on real vision before no sir but thank you for having me listen you know we've got to know each other over over recent times and i just find it fascinating where this whole kind of asset management industry starting to go right so ... Read More

Key Insights

• ✋ The transition from traditional finance to crypto offers unique opportunities for asset managers and traders due to the higher volatility and potential for alpha.
• 😤 The interviewee's team combines their experience in traditional trading with algorithmic and electronic trading techniques in the crypto industry.
• ❓ They started their crypto fund in 2018, focusing initially on mean reversion and arbitrage, before diversifying into market making and other strategies.
• 🖐️ Their fund aims to play both offense and defense simultaneously, with a focus on risk management and adaptive strategies.
• 😤 The interviewee's team has successfully navigated market downturns and continues to adapt their strategies to the evolving crypto landscape.
• 🥹 The fund's volatility has been dampened compared to simply holding crypto, but the interviewee emphasizes that risk management is a top priority.
• 😤 The interviewee's team has 11 systematic strategies within one fund, catering to different time horizons and market conditions.

Questions & Answers

Q: What made the interviewee transition from traditional asset management to crypto?

The interviewee experienced challenges in trading volatility products in traditional finance and saw the potential for alpha and risk management in the crypto market due to its higher volatility.

Q: How did the interviewee's team approach the early days of trading crypto?

They designed their own trading software, built their own order book, and aggregated multiple exchanges to create their own national best bid and offer (NBBO) price.

Q: How did the interviewee's fund perform during the crypto market crash in 2018?

They were able to profit from mean reversion trading and arbitrage strategies during that period, as the market exhibited clear oversold and overbought signals.

Q: How has the interviewee's fund evolved since its inception in 2018?

They have expanded their strategies to include market making and a total of 11 systematic strategies, aiming for an all-weather portfolio.

Summary & Key Takeaways

• The interviewee has a background in traditional asset management and trading but switched to crypto in 2018.

• Their team has a unique experience bridging the transition from traditional trading to electronic and algorithmic trading.

• They started their own crypto fund in 2018, initially focusing on arbitrage and mean reversion strategies, before diversifying into market making and other strategies.