About us

Cryptocurrency risk problem

Many ICO companies raised a significant amount of capital through Ethereum, Bitcoin, or other cryptocurrencies in 2017 and 2018. The problem is that these firms need to meet the expenses of their projects by paying in fiat, like USD or EUR. This exposes that to high and unwanted cryptocurrency price risk.

Similarly, many crypto miners get most of their revenues by mining and potentially selling cryptocurrencies, but have to meet their electricity costs and operating expenses in fiat. These large crypto holdings expose them to significant crypto price risk and potential inability to meet their fixed and recurring expenses.

Cryptocurrencies are characterized by extreme levels of volatility compared to traditional asset classes like equities and fixed income. The average annualized volatility for Bitcoin is in fact around 80%, while for Ethereum is around 115%. Equity markets in comparison have an average annualized volatility level of around 15%.

Investment Approach

We deploy the capital of our clients by adopting a sophisticated proprietary quantitative research process. We apply the scientific method to analyze and test our hypotheses on vast amounts of historical data in order to find signals of alpha. All the company's strategies undergo an extensive backtesting and validation process before going into production.

We invest a substantial amount of monetary and human capital with the objective of developing a superior technological and operational infrastructure. All the code is thoroughly tested by our quantitative developers before going into production. This enables us to minimize technological issues in live production and to easily make modifications when necessary to accommodate the requirements of an investment strategy.

We understand that a primary factor of success for a company resides in its team. For this reason, we always strive to attract and retain the best human talent from advanced degrees in the scientific and technological fields. When new members join our firm we always make sure that they fit into our culture and can provide a significant contribution to the improvement of our business.

Investment Process

Managing all types of risks for our clients and invested capital is of primary importance to us. We developed a sophisticated risk management framework with the objective of monitoring and keeping under predefined limits various types of risks embedded in our investment portfolios.

In the first phase of our investment process we collect data from a variety of traditional and alternative sources. In order to maximize our chances of finding new sources of alpha, we consider multiple datasets, including financial, fundamental, macroeconomic, government, and alternative sources. This allows us to develop a deeper understanding of how financial markets work by testing our hypotheses in a more comprehensive and extensive way in the following phases of our strategy development framework.
We use proprietary automated algorithms to clean the vast amounts of data at our disposal. Thereafter, our data scientists review and check the automated cleaning procedures to make sure that the data sets are clean and can be used thereafter by our quantitative researchers. Then we analyze the data sets processed in the previous step using sophisticated and advanced statistical methods in order to find alpha signals. Having confirmed that pilot trading returns are consistent with the backtest and what we expected, our investment team allows our clients to invest in the new investment product.

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