When Hyperion Decimus Founders Chris Sullivan and Matt Rosen launched the quant fund they had one “headache” to solve: mitigating counterparty risk.
Self-custody wasn’t secure enough, so they “started the process of carefully vetting potential custodians.”
That’s how they reportedly chose BitGo.
Sullivan said:
“BitGo is a battle-weathered qualified custody solution with the institutional bells and whistles that help you capture diversified opportunities in the space.”
The Quant fund explains that it chooses partners carefully “while pursuing its crypto investment strategy.”
A forward-thinking hedge fund, Libertas has dedicated its entire portfolio “to digital assets – seeking alpha while mitigating counterparty risk in an intelligent way.”
Its investment thesis springs from an important belief, explains Chris Sullivan, the Portfolio Manager and Co-Founder:
“Decentralization is a must for robust cyclical growth. Think about how opaque stocks are. There’s insider trading, naked short sells, slow performance updates from management, and so forth. By contrast, with crypto, I can go on Etherscan and see anything instantly and transparently, then evaluate the quant and qual accordingly.”
Equally clear-eyed, Libertas realizes that “the digital asset space comes with a different set of challenges.”
Sullivan states”:
“We’re meant to have a certain amount of headache due to decentralization. That’s why we’re constantly thinking about how to best mitigate counterparty risk. This space isn’t designed the same way as equities.”
Consequently, they conduct deep due diligence about who they partner with.
Jeffrey Tai, the DeFi Portfolio Manager, added:
“From a technical perspective, we could do self-custody. But from a risk standpoint, that’s not what we want. There should be checks and balances, and who we work with matters.”
The solution
Libertas primarily “leverages three services from BitGo: custody for long-only assets in its portfolio, staking from cold storage, and the DeFi integration with MetaMask Institutional (MMI).”
As covered, BitGo recently revealed that it has raised additional funding at a $1.75 billion valuation.
The crypto firm has acquired $100 million from new investors, while remaining focused on adhering to applicable guidelines and regulations.
In a tumultuous year for US-based crypto firms, a select few startups continue to secure large amounts of growth capital.