Positive Returns During Crypto Winter

Positive Returns During Crypto Winter

MEV Capital, Lithuania-based digital asset management and Web3 data intelligence company with more than $25 million in Assets under management, has outperformed most of its peers and brought positive returns to investors amid one of the most significant sell-offs in the crypto market seen in recent years.

The trend-agnostic crypto hedge fund is implementing market-neutral strategies to generate stable yield returns mainly through liquidity provision, statistical arbitrage, and on-chain loan liquidations on a set of decentralized applications.

During the highly volatile period when the crypto market suffered significant sell-offs induced by the contagion effect from the liquidations of over-leveraged crypto entities, MEV Capital was able to secure a high single-digit return over the same period. From May to July this year, MEV Capital applied conservative trading strategies to safeguard investor capital in the DeFi market. As a result, the digital asset manager succeeded in outperforming most crypto trading firms that suffered drawdowns in the same period.

Our mandate for the last quarter was to protect clients’ capital first during this chaotic time, while yield generation took a secondary role. However, we were happy about our ability to achieve positive returns for the said period,” says Laurent Bourquin, General Partner and Chief Investment Officer of MEV Capital.

“The yields we are able to generate are directly linked to the activity in the crypto-market, which is naturally lower when the macroeconomic conditions are tight, but tends to come with large order flows and volatility spikes, generating other types of opportunities.” 

MEV Capital has been running a set of blockchain-based strategies mainly exposed to stablecoins since 2021. It primarily targets crypto-native entities, HNIs, and institutional investors for DeFi exposure and tailor-made advisory. MEV Capital’s client list includes ex-hedge fund managers, digital asset investment firms, family offices, and a financial product structurer with $4 Billion in sales volume in 2021. 

The next phase for MEV Capital is the expansion and rapid growth. Besides capital allocation and yield strategies, the company is heavily focused on MEV research & development efforts aimed at maintaining a competitive edge and solidifying its market position by focusing on proprietary infrastructure to interact with decentralized networks.

Highest quality asset management in DeFi is inseparable from having in-house trading systems coupled with geo-distributed integrations to ensure the lowest latency and just-in-time order completion. Designing the strategies, fetching the required data, and automating executions in a decentralized environment is incredibly complex. Only a handful of companies can do that at a profitable scale.

Even though DeFi has been around for just a few years, the competition in MEV activities is already fierce. We had to move from standard strategies to focus more on long-tail events and cross-chain cases, where trades are not as crowded,” added Laurent Bourquin.

Currently, the company is preparing for its Seed round in the autumn of 2022. MEV Capital was founded in 2021 by Laurent Bourquin and Gytis Trilikauskis.