Re7 Capital, a DeFi portfolio manager, has launched two funds for professional investors this year – the Re7 ETH Yield Fund and the RxR Opportunities Fund. The funds allow easy access to liquid long-only crypto strategies managed in a compliant manner by Cayman-domiciled funds.
The Re7 ETH Yield Fund grants full exposure to Ethereum, the leading blockchain ecosystem, through a fund with monthly liquidity. The fund aims to provide high single-digit positive carry as ETH is deployed across the DeFi ecosystem to generate yield.
The RxR Opportunities Fund is a joint venture between Re7 Capital and a leading crypto investment house. Its strategy is designed to actively manage a long-only portfolio of liquid mid-cap crypto tokens.
Re7 Capital will capitalize on its expertise in the crypto market to conduct fundamental research and perform detailed code reviews. The firm believes that the public crypto market is less efficient than the private one and that the new strategies will help it capitalize on the next leg up.
Re7 Capital expects the funds to scale up to $100 million in 2023. The firm’s CEO, Evgeny Gokhberg, views the mid-cap crypto token market as highly inefficient and believes that fundamental analysis can help find mispriced assets. He added that the crypto market is highly cyclical, and the firm is excited about the opportunities that lie ahead.
Re7 Capital’s successful market-neutral DeFi yield fund, which has been running since 2021, served as a foundation for the new Re7 ETH Yield Fund.
Re7 Capital plans to offer two strategies with directional exposure to cryptocurrency to expand its investment product suite.
The firm’s expertise in the space and its ability to conduct fundamental research and perform detailed code reviews will be utilized in managing the funds. The firm’s goal is to offer professional investors easy access to crypto and provide high single-digit positive carry.