How MidSquare invests.
A disciplined, research-led approach to an early asset class. The firm invests in established digital assets and the decentralised finance protocols built around them, applying the portfolio disciplines its founders practised across decades of institutional asset management.
Conviction in the asset class
MidSquare holds a considered, long-term view that digital assets and decentralised finance will play a growing role in the financial system, and that this transition creates investable opportunity.
Deliberate positioning
As adoption broadens, the pricing of digital assets continues to develop. The firm positions portfolios to participate in that repricing over the medium to long term rather than trading short-term movements.
Rigorous research
The opportunity set is wide and uneven. Diligent, data-driven research across blockchains, assets, protocols and instruments is how the firm separates durable opportunity from fashion.
Deliberate risk management
Digital asset markets are volatile, and drawdowns are a feature of the asset class. Protecting capital through downturns is treated as a core discipline, not an afterthought.
Two sources of return
Asset appreciation
Ownership of established, larger-capitalisation digital assets selected through research, held with a medium to long-term horizon.
DeFi yield generating strategies
Income earned through DeFi yield generating strategies on decentralised exchange protocols, a return stream native to decentralised finance that complements market exposure across conditions.
The investment process
Six stages, applied in sequence. Each stage narrows the opportunity set before capital is committed.
Qualitative and quantitative research across blockchains, coins, tokens, exchanges, protocols, liquidity pools and derivative instruments, set against the macro and regulatory landscape.
New and fashionable opportunities must first pass strict credibility filters. Only market-tested blockchains, protocols and assets become investable.
Approved opportunities are assessed for relative expected risk and return before any ranking for inclusion.
Capital is allocated against expected risk, return and correlation, optimised for asymmetry of outcome and net of on-chain transaction costs.
Allocations are adjusted to prevailing risk budgets and the market regime in force. Different regimes call for different activity.
Disciplined execution across protocols, fee classes and pairs through secure, institutional-grade gateways, so that outcomes reflect research rather than slippage.
Risk discipline
Risk management rests on three tools, applied without leverage.
Diversification
Exposure is spread across blockchains, assets, protocols and positions so that no single point of failure defines the outcome.
Hedging
Risk assets can be converted into stablecoin exposure when conditions warrant. This is used sparingly and deliberately.
Insurance
The maturing options market in major digital assets allows protection to be bought against significant market corrections when the opportunity presents.
What we will not claim
We do not believe we can time markets, and we do not try. Portfolios are built to be positioned through cycles rather than traded around them.
Digital assets are a volatile, developing asset class. Short-term losses can be significant, returns are not guaranteed, and capital is at risk. Our disciplines are designed to manage these risks, not to remove them.
Detailed strategy and fund information
Information on the firm's investment vehicles, including terms, documentation and performance, is available to qualifying investors on request, subject to eligibility verification.
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