ERIC KIM

Eric kim bitcoin hedge fund

Written by

admin

in

ERIC. LET’S DESIGN THIS LIKE IT’S LITERALLY YOUR LIFE’S WORK.

Below is a personalized blueprint for the ERIC KIM BITCOIN HEDGE FUND – built around your brand, your risk tolerance, and your unfair advantage: attention + conviction.

1. Fund Identity: What This Vehicle 

Is

Name / Concept (working title):

ERIC KIM BITCOIN FUND – High-Conviction BTC & Crypto Macro Fund

Core identity:

  • Bitcoin‑centric, not “spray and pray altcoins”
  • High volatility accepted, long-term 10x upside is the explicit target
  • Radical transparency in philosophy, documented publicly through your blog/content
  • Designed for investors who understand: “I’d rather be directionally right and volatile than ‘stable’ and mediocre”

Mandate (how you explain it):

“This fund exists to aggressively compound capital through Bitcoin and crypto macro trends over a 4‑year horizon, with the willingness to stomach deep drawdowns for asymmetric upside. We manage risk with rules, not fear.”

2. Portfolio Blueprint (Eric-Style Allocation)

Let’s design a default target allocation that fits your 10x ambition and your personality:

A. Core Conviction Sleeve – “Never Sell the Soul” (40–60%)

  • 40–60% of NAV in BTC spot + possibly BTC ETFs (depending on structure/jurisdiction)
  • This is your soul stack – only trimmed in insane blow-off conditions or to meet redemptions
  • Time horizon: full 4+ years, aiming to ride halving cycles and macro adoption

B. High-Octane Tactical Sleeve – “Artist/Warrior Mode” (20–30%)

You get to express your trader/artist instincts here:

  • Rotational trades between BTC, ETH, and a small curated basket of high-conviction L1/L2/infra plays
  • Momentum / trend-following:
    • Long strength in bull phases
    • Cut or hedge aggressively in deep drawdowns
  • Tactical derivatives:
    • Leveraged BTC/ETH longs in strong trend regimes
    • Protective puts or short futures when macro looks ugly

This is where you try to add multiple of alpha on top of the core BTC performance.

C. Yield & Market-Neutral Sleeve – “Pay the Bills” (10–20%)

  • Low to moderate risk strategies:
    • Basis trades (spot vs. futures)
    • Funding rate capture on perps
    • BTC/ETH staking or restaking
    • Blue-chip DeFi lending (Aave/Compound) with strict risk controls
  • Goal: generate steady yield to smooth volatility and fund expenses
  • Think of this as the “stability engine” that lets you survive long crypto winters without panic.

D. Optional Moonshot Sleeve – “Art Projects” (0–10%)

  • Illiquid, tiny position sizes in:
    • Early-stage tokens
    • NFTs / culture bets
    • Stuff that fits the Eric Kim aesthetic (art x crypto x philosophy)
  • Size is tiny relative to NAV; it’s there to create storytelling, optionality, and maybe one big 100x outlier.

3. Risk Rules (Your Personal “Honor Code”)

You’re going for 10x, so you accept pain, but you still need rules that prevent total annihilation.

Non-negotiable risk rules:

  1. Max Fund Drawdown Line in the Sand
    • Example: at –40% from high-water NAV, you must:
      • Cut gross exposure
      • Reduce leverage to near zero
      • Move a set % (e.g. 20–30%) to stables/treasuries
    • This is your “kill switch” to stay alive.
  3. Position Size & Leverage Caps
    • No single non-BTC asset > 10–15% of NAV
    • No single derivatives strategy can blow up more than 5–10% of NAV in a worst-case day
    • Gross leverage capped (e.g. 2–3× max), only allowed in clear uptrends
  5. Exchange & Counterparty Limits
    • Never more than X% of assets on any one CEX
    • Majority of assets in cold or institutional custody
    • Regular checks on exchange solvency/health
  7. Redemption / Liquidity Alignment
    • Lockups and redemption terms that reflect your asset mix
    • Example: quarterly redemptions with notice, so you’re not forced to puke illiquid positions.

4. Structure & Jurisdiction (Minimalist Version for You)

Since you’re aiming at a real hedge fund, not just “a trading account with friends’ money,” aim for:

  • Offshore master fund (e.g. Cayman) – tax neutral, familiar structure for crypto
  • Optional:
    • US feeder (Delaware LP/LLC) for US investors
    • Future EU/other feeder if needed
  • Separate management company (your GP / management entity) that:
    • Collects management & performance fees
    • Owns the IP (strategies, code, brand tie-in)

This is where you pull in a real fund lawyer + fund admin + auditor.

Your job: vision, strategy, capital raising, and content.

Their job: keep the paperwork bulletproof.

5. Your Unfair Advantage: CONTENT = CAPITAL

Most hedge funds have:

  • No story
  • No soul
  • No audience

You have all three.

A. Brand Positioning

Position the fund as:

“The Bitcoin and crypto macro vehicle built by a creator who’s been publicly thinking, writing, and skin-in-the-game-ing for years.”

Key angles:

  • You are already public, already transparent.
  • You transform market updates into essays, photos, and philosophy – people don’t just see numbers, they feel the journey.
  • Your LPs get:
    • Normal institutional reporting plus
    • Public and semi-private “Eric Kim style” commentary on cycles, psychology, and macro.

B. Content Funnels → LP Pipeline

Top of funnel (free, public):

  • Blog posts + newsletters:
    • Bitcoin cycles + risk
    • Redemptions, greed, fear, volatility
    • How you think about money, freedom, and art
  • Occasional YouTube/podcasts:
    • “Behind the scenes of running a Bitcoin fund”
    • Macro reflections during bull & bear periods

Middle of funnel (warm, serious people):

  • Webinars / Zoom calls:
    • Quarterly macro updates
    • Q&A on your framework (no promises, just transparency)
  • LONG-form PDF or webpage:
    • Fund philosophy
    • Your personal story with BTC and art
    • FAQ on risk, fees, redemption

Bottom of funnel (actual LPs):

  • One-on-one calls with qualified/accredited/institutional prospects
  • Data room:
    • Deck
    • Legal docs (PPM, LPA)
    • Historical track record (live + audited, once you have it)

You don’t shout “invest now!”

You document the journey and let serious people raise their hand.

6. Fees, Terms, and “Eric Factors”

Baseline: traditional 2% management / 20% performance is fine. You can:

  • Reward early believers with:
    • Reduced management (e.g. 1%) or
    • Reduced carry (e.g. 15%) or
    • Lifetime “founding LP” perks

Lockups:

  • 1-year soft lock common for this kind of strategy
  • Redemptions quarterly with 30–60 days’ notice

Make it clear:

  • This is not a “get rich quick” vehicle.
  • It’s a 4+ year compounding machine with wild mark-to-market swings.

7. 4-Year Game Plan (10x Roadmap)

YEAR 0–1: Prototype & Proof

  • Trade your own capital and maybe a tiny friends-and-family pool (properly structured)
  • Build:
    • Track record
    • Operational muscle (custody, execution, risk dashboards)
    • First version of your investment letter style (Eric-flavored)

Deliverables by end of year 1:

  • 12–18 months of track record
  • Legal structure blueprint ready
  • Short list of service providers (law, admin, audit, custody)

YEAR 1–2: Launch the “Real” Fund

  • Officially launch the fund entity
  • Target first $3–10M AUM from:
    • Long-time readers
    • High-net-worth believers
    • A few smart family offices who resonate with your writing

Focus on:

  • Flawless operations (no sloppy stuff)
  • Deep over-communication: monthly letters, quarterly calls
  • Clear articulation of mistakes and lessons, not just victories

YEAR 2–4: Scale, Sharpen, Systematize

  • Refine the three core engines:
    • Core BTC long sleeve
    • Tactical crypto macro sleeve
    • Yield / neutral sleeve
  • Build or hire:
    • 1 quant dev
    • 1 risk / operations person
  • AUM goal by year 4 might be:
    • $50M+ if performance is strong
    • The exact number matters less than:
      • Real, repeatable process
      • Respectable track record
      • Bulletproof infrastructure

At that point, you can start talking to:

  • Funds of funds
  • Family offices
  • Crypto-native allocators

And your story is:

“Here is 4 years of what I actually did with real money and real skin in the game.”

8. How This Stays “Eric”

Make sure you keep:

  • Creative autonomy – you still shoot photos, write essays, think about life and art
  • Radical honesty – you talk publicly about fear, greed, and your own psychology
  • Non-corporate voice – the fund is institutional in structure, but human in tone

You’re not trying to cosplay a Wall Street robot.

You’re building the most Eric Kim version of a Bitcoin macro fund:

  • Philosophical
  • High-conviction
  • Transparent
  • Willing to suffer volatility for freedom.

9. Quick Reality Check (Important)

Just to be straight:

  • None of this is financial or legal advice.
  • You must talk to:
    • A fund lawyer
    • A tax advisor
    • A compliance professional
  • Crypto is insanely risky. 10x upside = brutal downside swings.

Your edge is that you already live close to risk, art, and honesty.

Channel that into a structure that’s disciplined enough to survive and wild enough to actually 10x if the cycle cooperates.

If you want, next step I can:

  • Draft a one-page “ERIC KIM BITCOIN FUND” manifesto
  • Or outline your first investor deck slide by slide.

More posts