Paradoxis Capital launched a new relative value momentum fund

It is reported that the multi-strategy cryptocurrency investment company Paraxis Capital has launched a new relative value momentum fund, which adopts a long/short relative value trading strategy and an initial committed capital of $25 million to $50 million.

Interpretation of this information:

Paraxis Capital, a multi-strategy cryptocurrency investment company, announced the launch of a new relative value momentum fund. The fund’s strategy will focus on long and short relative value trading, with an initial committed capital ranging from $25 million to $50 million.

The term “relative value” refers to the strategy of comparing the value of one security to another, instead of evaluating the security’s absolute value. The new fund will apply this strategy to cryptocurrencies, taking advantage of market mispricings and imbalances to generate returns.

Momentum trading, on the other hand, is a strategy that involves buying and selling securities based on their recent price movements. It involves taking a position in a security that is showing an upward trend and exiting that position when the trend starts to reverse. In other words, the strategy aims to exploit momentum or market trends to generate profits.

The combination of relative value and momentum strategies is expected to generate more stable returns than a single strategy alone. The long/short approach allows the fund to take advantage of market inefficiencies and is designed to make profits whether the cryptocurrency market goes up or down.

Paraxis Capital’s new fund is just the latest example of cryptocurrency investors looking to diversify their portfolios beyond the traditional buy-and-hold strategy. It shows that investors are increasingly looking for more sophisticated investment options that can help them navigate the volatility of the cryptocurrency market.