Mainnet launches' impact on prices

For professional investors, life is measured in terms of alpha, the excess return an active manager earns above a defined benchmark. If you’re an equity investor it’s not good enough to earn 5% for your clients. Not when the S&P 500 returns 7%. You’ve got to demonstrate some sort of “edge” that helps you outperform the market. That edge can come in all shapes and sizes. Typically, though, you need to either a) make better decisions than your competition (you’re smart and fast), b) earn some type of asymmetric information advantage (better deal flow, operate in immature/messy markets), or c) actively drive better outcomes (have a kingmaker’s rolodex and human capital to invest alongside financial).

The requirements for generating alpha are generally the same regardless of what type of fund/investing vehicle you’re running. But the strategies to actually perform differ.

• Long/Short: Use fundamental research to identify over/undervalued assets
• Quantitative: Rely on proprietary algorithms to make fast trading decisions
• Arbitrage: Exploit observable price inefficiencies across markets
• Global macro: Play broad economic, political, or general industry trends
• Event-driven: Put on positions around specific events (mergers, product launches, etc.)