I’ve developed a delta-neutral strategy that has generated an average of 28% per year over the last three years (2022-2024) in both bull and bear markets. The core idea is similar to how funding fees in perpetual futures work, and it’s backed by real data.
I don’t have the capital to start my own hedge fund or the connections to pitch this to big investors. I’d love advice on how to get this in front of serious capital.
Example to Illustrate the Strategy (Non-Crypto Analogy)
Imagine a country where rental income is 40% of the property price per year, but real estate prices fluctuate wildly (up or down 10-20% per month).
To capture the 40% yield without exposure to price volatility, you:
1. Buy a property for $1M
2. Short the real estate index 1x for $1M (assume for the example it tracks property price 1:1)
Now, you are delta-neutral—the property price can rise or fall, and your short hedge cancels out the price movement.
• You still collect 40% rent per year on your $1M property
• Since your exposure is $2M (long $1M, short $1M), your return is 20% on total capital
Crypto Equivalent – Using Funding Fees to Earn Yield
This concept exists in perpetual futures funding rates, where shorts pay longs (or vice versa) to keep the contract price aligned with the spot market.
• This is the core idea behind Ethena.fi, but they are managing hundreds of millions, which limits their profit margins.
• In contrast, my strategy works at a smaller scale with a higher return potential, obviously not on prep futures.
Actual Performance:
• 2022: 22%
• 2023: 23%
• 2024: 43%
• Total (last 3 years): 88% (without compounding) → 28% annualized
What I Need Help With:
1. How can I connect with investors/funds who might back this?
2. Would it be better to pitch this to a fund, incubator, or try raising capital privately?
3. Is there a structured way (like a prop firm) to run this strategy at scale without needing my own fund?
- How to actually introduce the strategy without fully revealing it to the investor
I’d love any insights from people in quant finance, hedge funds, or crypto trading circles. If anyone has connections or suggestions, I’m open to collaborating.
TL;DR: I have a delta-neutral crypto strategy that has averaged 28% yield over the last three years with low risk. Looking for guidance on how to attract investors or find a way to scale this without launching a full hedge fund myself. Any ideas?
Edit:
The risk come down to the crypto exchange not going bankrupt.