David Fauchier – Market Neutral Crypto

Hosted by
Bill Brewster

Bill Brewster is a private investor. He cohosts the podcast Value: After Hours with Tobias Carlisle and Jake Taylor. Tobias, Jake and Bill met at a Berkshire Hathaway meeting and formed a lasting friendship. And, as it turns out, people really like the podcast.

While Bill tries to replicate Warren Buffett and Charlie Munger’s thought processes, he is heavily influenced by Bill Miller III, Stan Druckenmiller, and others. This podcast is his attempt to dig deeper into other investing/business philosophies and share the knowledge with the world.

David Fauchier stops by The Business Brew to discuss crypto and market neutral strategies in crypto assets. David works at Nickel Digital Asset Management, an investment manager connecting traditional finance with the digital assets market. The firm deploys highly sophisticated low-latency algorithmic trading, pursuing a range of arbitrage strategies in both spot and derivative markets, as well as a range of directional buy-and-hold products. All funds are designed with institutional clients in mind, but we hope the discussion is broadly applicable.

You can reach David at @dfauchier on Twitter.

We hope you enjoy the discussion. Detailed show notes below the Stream by Mosiac sponsor copy and thank yous.

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Album art photo taken by Mike Ando. Please see https://www.mikeando.com/

Thank you to @mathewpassy (on Twitter) for the show production.

Youtube:

  • 4:19 – What David does – market neutral strategies in crypto
  • 6:04 – How to look at market neutral strategies when there is not “value” in a coin
  • 8:48 – David’s take on crypto and monetary regimes
  • 14:39 – How decentralized networks validate change, and therefore confirm “truth” in the chain
  • 13:44 – BitCoin as a substitute for gold and as a network architecture
  • 16:49 – Why David was comfortable moving into crypto professionally
  • 20:24 – The role of Etherium in crypto and why Etherium was a big change
  • 24:49 – What is Ethereum?
  • 29:44 – How to find the good assets in a sea of bad ideas
  • 34:58 – Zero Knowledge Proofs and how they help crypto scale
  • 43:39 – How do the big cloud players fit into the landscape in the future?
  • 47:04 – How blockchain/Web 3 will potentially give users power over their data
  • 51:04 – What could be enabled in the Web 3 world?
  • 56:34 – Digital scarcity and what that may mean in the future
  • 59:34 – When something that’s stupid and crazy gets more stupid and crazy then it probably isn’t stupid and crazy.
  • 1:04:04 – Obligatory Metaverse discussion
  • 1:07:34 – NFTs and fraud
  • 1:10:44 – How David thinks of counterparty risk
  • 1:23:04 – Whether crypto markets will continue trading the volume they do
  • 1:27:04 – Coinbase as a business

Disclaimer: Bill manages a portfolio under the name of Sullimar Capital Group. This podcast is for informational and educational purposes only. Nothing in this podcast or on SullimarCapital.Group is investment advice. All information in this is opinion based, potentially biased, and requires verification.

Bill and his guests make no representation, warranty or undertaking, express or implied, as to the accuracy, reliability, completeness or reasonableness of the information contained in these podcasts. Any assumptions, opinions and estimates expressed constitute the participant’s judgment as of the date thereof and are subject to change without notice. Any projections contained in the information are based on a number of assumptions as to market conditions and there can be no guarantee that any projected outcomes will be achieved. This podcast does not accept any liability for any direct, consequential or other loss arising from reliance on the contents of this presentation.

This podcast series DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICIATION OF AN OFFER TO BUY ANY SECURITIES MENTIONED OR DISCUSSED. Seek the your financial, tax, legal, accounting, or other advisor’s advice before making any investment decisions. We are not your fiduciary or advisor.

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