PARTNER CONTENT
Aplhabeth Capital – a multiple winner at the Hedgeweek Global Digital Assets Awards 2025 – is a hedge fund specialised in digital assets which aims to mitigate risk and provide sustainable returns over time. Here Co-founder and Director Enmanuel Rodriguez Dávila outlines what sets the firm apart and how it’s addressing current challenges and opportunities…
First of all, I want to thank Hedgeweek once again for this recognition. Winning multiple awards for the second consecutive year, including Bitcoin Fund of the Year (over $50M AUM) and Long/Short Systematic Fund of the Year: Annual Excellence, is a tremendous honour.
It’s a testament to the work of our entire Alphabeth family, and above all, to the dedication of our team, the trust of our investors, and the collaboration of our partners. These awards are a shared achievement and we’re proud to build something truly long-term, together.
In no more than 50 words, please describe your firm’s flagship investment strategy and what makes it special?
At Alphabeth, we run a fully quantitative strategy. What makes it special is how it adapts dynamically to market phases through volatility based exposure and systematic control. No emotions, no discretionary calls. Since 2019, we’ve delivered +1,962% net return, with 476% total alpha and far lower volatility than BTC.
What are the three key selling points of your business and investment thesis?
First, we believe performance has to be measurable, not just narrative. Our flagship strategy has outperformed Bitcoin by more than 1,000 percentage points. It delivers a Sharpe ratio of 0.90, a Sortino of 1.36, and a Calmar of 1.62. That means we’re not just riding the bull market wave, we’re doing so more efficiently and with better downside protection than the benchmark.
Second, we as founders have real skin in the game. Alphabeth was born on the idea of a proprietary vehicle for the founders. We’re fully aligned with our investors, and that creates both discipline and conviction. When we talk about protecting capital, it’s also our own on the line.
Third, we’ve built an institutional-grade infrastructure around a crypto-native edge. Our fund is Gibraltar-based, governed under MiFID II alignment, with top of the line custody, independent compliance, and strong internal controls.
What economic forces – in Europe and/or globally – do you anticipate having the biggest impact on your investment strategy over the next 12 months?
Without question, the ETF landscape has permanently changed the market. We anticipated it, and we welcome both the liquidity and the institutional inflow it’s bringing into the space.
What we’re seeing now is a clear structural shift: institutions are absorbing significant selling pressure even from long-term bitcoin holders, including early whales who are exiting at these levels after a decade of gains.
That absorption capacity is something new. Historically, such selling would have triggered deeper market shocks, but this time we’re seeing signs of maturity: ETF flows are providing a real bid, even as on-chain data shows long-term wallets distributing. In our view, this reinforces that we’re in an advanced stage of the bull cycle liquidity remains strong, but the upside asymmetry is compressing.
The real question is what comes next. Macro risks like escalating tariffs, interest rate volatility, or geopolitical tensions can flip sentiment almost overnight. We saw a hint of that in February, when modest policy shifts led to sharp corrections. In crypto, risk unwinds quickly when leverage and crowd positioning are stretched.
That’s why at Alphabeth, our focus has never been about chasing short-term moves. It’s about building a strategy that compounds over full market cycles capturing upside, protecting in downturns, and staying consistent when noise dominates. Long-term value creation is our north star, and everything we do is designed around that.
How are you preparing for the above?
We prepare for uncertainty every day. That’s the essence of our strategy: it’s designed not to predict the future, but to react effectively when the data shifts. We continuously stress-test different macro and volatility scenarios, apply filters to our models based on implied risk, and adjust exposure accordingly.
Because everything we do is systematic, our response is consistent whether it’s a melt-up or a meltdown. If we enter a bear phase, we’ve been there before. We’ve already shown we can hedge, protect capital, and generate alpha in drawdown environments. That anti-fragility is what gives us confidence heading into any cycle phase.
In terms of a market event or period, what has been the biggest challenge your investment strategy has faced since its inception?
The most challenging moment without a doubt was November 2021. Bitcoin was nearing all-time highs, the entire market was euphoric, and the dominant narrative was “$100k is coming”. But our system gave us a hedge signal. It told us to reduce exposure, even go defensive.
That was a hard call. It’s never easy going against the crowd, especially when momentum feels unstoppable. But we trusted the data. As a result, we avoided a drawdown of more than 75%, while continuing to generate alpha. That episode was a defining moment for us. It validated the strength of our process and reminded us why discipline especially when it’s uncomfortable is our biggest edge.
As a friend once told me: “There’s no such thing as a non-quantitative trade only people who didn’t calculate the odds.”
That stuck with me. At Alphabeth, our job is to do the math, stick to the framework, and protect capital no matter the noise.
Enmanuel Rodriguez Dávila, Co-Founder and Director of Operations, Alphabeth Capital – With a background in business management and extensive experience in fund and wealth management, Enmanuel plays a central role in shaping strategy, overseeing operations, driving business development, and managing key investor relationships at Alphabet Capital, a leading quantitative crypto hedge fund.
