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By Opalesque Geneva for New Managers: Investors in crypto and Web3 can navigate this market when armed with nimbleness and flexibility in order to weather the storms. And let's not forget stability. Indeed, crypto markets typically can experience drawdowns of approximately -70% during bear markets and rallies of +1000% through bull markets. This stability may mean foregoing a short-term approach in favour of patient capital.
Re7 Capital, a London-based award-winning digital asset investment group specialising in DeFi* (and with about $800m deployed in DeFi), has just come up with a solution to maintain stable footing in the dramatic world of crypto. Gathering all its existing strategies, the manager has just launched a multi-strategy fund.
Evgeny Gokhberg, who founded Re7 Capital in 2021 and has 10 years of crypto experience, will present at the Small Managers - Big Alpha Episode 17 interactive webinar on June 10th (details below).
The Re7 Master Fund comes with several approaches to ensure gains in any market. It dynamically allocates capital across:
• Re7 Liquidity Fund (market neutral, yield-focused),
• Re7 Opportunities Fund (liquid venture/token strategies),
• SocialFi Venture (early-stage equity/token deals),
• Special Situations (distressed assets, private deals, airdrops, illiquid venture),
• Cash and cash equivalents (deployed via institutional cash products like BUIDL & SPRXX).
The fund tilts allocations based on market cycle phases, using Re7's macro framework to optimise exposure, the manager told Opalesque.
Currently, the Master Fund leans towards risk-on exposure, primarily favouring:
• Opportunities Fund and Venture/Special Situations for alpha capture.
• Liquidity Fund remains active for downside protection and yield.
This tilt aligns with the ongoing bullish market phase (Markup), as the fund seeks to capture outsized returns before transitioning into the Distribution phase.
The rationale for launching the Caymans-domiciled Re7 Master Fund was to capture full-cycle value across bull and bear markets using Re7's proven strategies, according to the manager. They also want to centralise their allocation management, offering dynamic capital deployment across Re7's funds and deploy dry powder during distressed periods, while maintaining active exposure during rallies. The other objectives were to avoid inefficiencies of single-strategy vehicles and double fees through integrated management, as well as incorporate fewer liquid opportunities, to fully capitalise on the deal flow access provided by their unique positioning in the market.
Patient capital can ride out volatility
Crypto is the best performing asset class of the last decade. Bitcoin (BTC), in particular, has outperformed all other major assets with an annualized return of 230%, significantly outpacing traditional investments like the Nasdaq 100 and U.S. large caps over a 14-year period, according to the manager. US BTC ETFs were the most successful launch of any ETF ever, with BlackRock and Fidelity leading the way.
But the crypto market is far from static. It experiences distinct four-year cycles, alternating between bull and bear phases. During bear markets, fear, uncertainty, and doubt drive significant mispricing of assets, whilst presenting the opportunity to strategically allocate into the markup and distribution phase, for outsized returns.
The Fund's six-to-eight-year lock-up reflects a strategy designed to span two full crypto cycles, ensuring patient capital can ride out volatility. There is certainly a need for flexibility in illiquid investments, especially in early-stage venture and special situations.
Furthermore, the lock-up ensures an alignment with the fund's core thesis: time in the market beats market timing, capturing alpha across phases.
"As of mid-2025, as per the technicals, we are in the Markup Phase of the cycle, post-Bitcoin's 4th halving in April 2024," the manager said. "This phase typically follows the accumulation period and is characterised by capital inflows, token outperformance, and risk-on activity - consistent with Re7's forecasted allocations and increased activity in venture and liquid strategies."
The Fund seeks to outperform the Bloomberg Galaxy Crypto Index (BGCI), a benchmark designed to measure the performance of the largest cryptocurrencies traded in USD (at $2.75 on June 9th, compared to $2.23 on March 9th).
* Decentralized finance (DeFi) is an emerging peer-to-peer financial system that uses blockchain and cryptocurrencies to allow people, businesses, or other entities to transact directly with each other. The key principle behind DeFi is to remove third parties like banks from the financial system, thereby reducing costs and transaction times.
Related article: Opalesque Exclusive: Re7 Capital finds real value in Web3
Upcoming Webinar:
Episode 17 of this ground breaking webinar series presents you another carefully screened panel of investment managers. In one hour, you'll meet them all, get to know their top quartile strategies, and - since this an interactive session - you will be able to ask questions.
Free registration: www.opalesque.com/webinar/
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