Strategies
BENAIAH DIGITAL, LP
INVESTMENT STRATEGIES & ALLOCATIONS
Benaiah Capital’s strategies stem from experience seeking out opportunities in the digital asset space and providing exposure to the cryptocurrency market.
Benaiah Digital will hold a percentage of Bitcoin and rebalance based on management’s discretion. Bitcoin is a foundational asset for blockchain technology and the digital asset market and will be a cornerstone investment strategy for Benaiah Digital.
Benaiah Digital will hold a percentage of Ethereum. The fund will rebalance quarterly or based on management’s discretion. As the backbone for many tokens, decentralized applications, and Web3 infrastructure, Ethereum is foundational to the development of today's blockchain architecture.
Benaiah Digital will utilize a variety of trading strategies designed to capitalize on the volatility across the digital asset market. The trading strategies will provide non-correlated returns helping balance the fund's portfolio while offering downside insurance protection for the fund. The management team plans to offset the realized tax trading gains with the ability to harvest losses in the fund's other investment allocations.
Benaiah Digital generates additional returns through the staking and lending of assets. Through staking, the fund is rewarded for actively participating in the blockchain network, which contributes to the overall stability and security of the asset’s native ecosystem.
Digital executes collateralized lending strategies with exchanges, brokerages, and commercial institutions. These lending strategies help deliver risk-adjusted returns while providing liquidity or dry powder to capitalize on the downturns in the market.
Digital will primarily target high conviction alt coins with this allocation. This investment strategy is designed to be flexible across a wide-range of digital assets, and these coins are selected by management based on internal due diligence. A portion of this allocation is focused on early-stage projects, which often times can be acquired prior to being traded on the public markets. The early-stage projects are typically a longer-hold investment with the potential for significant returns.
BENAIAH DIGITAL FIXED INCOME, LP
INVESTMENT STRATEGIES & ALLOCATIONS
Benaiah Digital Fixed Income executes and manages collateralized lending and hedged staking strategies that provide investors accessibility, security, and consistent yield generation.
Benaiah Digital Fixed Income manages and executes a collateralized lending strategy that provides investors accessibility, security, and seeks consistent yield generation. Fixed Income provides liquidity to the digital asset market by lending stablecoins in a secure collateralized ecosystem.
The fund uses this collateralized lending strategy seeking to generate higher risk-adjusted returns than similar traditional financial products. The need for liquidity in the digital asset market creates a unique opportunity for Fixed Income to capitalize on supplying assets to digital banks, exchanges, and other commercial institutions to generate above average returns with minimal downside risk.
The hedged staking strategy of Fixed Income combines the yield of staking without the volatility concern of the asset price. Participants in staking receive a reward (staking yield) for committing their assets to the blockchain, ultimately strengthening its ability to process transactions while contributing to the security of the blockchain ecosystem.
The second component of this strategy is to hedge out the price volatility of the asset, leaving just the staking yield. With this staking strategy, the fund maintains a long position on the asset while protecting the downside exposure in asset price. The long and short positions offset the price volatility, yielding just the interest from the staking of the asset.
Depending on the asset staked, it is not uncommon to see yields ranging between 12-15%.
