A novel approach to digital asset management
We are Pareto Technologies, a pioneering asset management and technology development firm operating in global digital asset markets. Our multi-strategy investment approach employs a core suite of systematic strategies which seek to generate risk-adjusted returns through market-neutral exposure to the rapidly emerging digital asset markets.
Our multi-strategy approach is designed to offer considerable capacity and enhanced risk-adjusted returns through a variety of market-neutral cryptoasset strategies.
We believe that the current state of the digital asset markets necessitates such an approach to effectively capture alpha while mitigating downside risk. The flexibility of our approach allows for allocation of capital away from strategies when they become less attractive to those that offer superior risk premia.
We actively search for unique entrance opportunities that offer market-neutral, low-beta exposure to the rapidly emerging, non-correlated asset classes of cryptocurrencies and other digital assets.
Our market-neutral investment approach auspiciously positions our firm to capitalize on the persistent inefficiencies seen in these digital asset markets through strategic liquidity provision while remaining hedged against the idiosyncratic risks associated with high-conviction, purely discretionary strategies.
Being non-sovereign and lacking a consolidated tape system, digital assets are subject to inordinate market fragmentation with hundreds of trading venues operating across the globe.
This fragmentation results in highly inefficient, friction-laden global markets that are rife with sources of excess return. Further, the unique market microstructure and rigid capital controls present in cryptoasset markets suggest that these inefficiences with persist in the long-term.
At Pareto, our investment philosophy is grounded in the belief that the search for returns in today’s financial markets demands ever more imagination, innovation, and conviction.
Our investment philosophy is grounded in the belief that the search for returns in today’s financial markets demands ever more imagination, innovation, and conviction. As a result, all of our operational, financial, and technological decisions are guided by a contrarianism that demands diverse and inventive approaches to thinking and problem-solving.
Many institutional investors would consider the inefficiences of the cryptoasset market as red flags. At Pareto, the crux of our investment mandate is the deployment of a combination of quantitative and qualitative tools to uncover independent, hard-to-find sources of return from these market frictions. By taking advantage of these inefficient market characteristics, we are well-positioned to capitalize on the resulting opportunities in the short and medium-term and contribute to the stability of the markets in the long-term.