ZX Squared Capital Outperforms Bitcoin with 50% Reduced Risk

CK Zheng, co-founder and Chief Investment Officer of ZX Squared Capital (ZXSQ), has spent three decades working with risk management. His background includes stints at Credit Suisse as Global Head of Valuation Risk and Morgan Stanley as Executive Director of Valuation Risk Management. In 2021, he left traditional finance to bring options hedging into the Bitcoin market.

ZXSQ's performance record since inception stands at a cumulative return of 229.18%, compared to Bitcoin's 136.94% over the same period. The fund aims to halve the risk of Bitcoin while achieving net returns exceeding those of Bitcoin itself. This is done through options hedging, which limits severe tail losses and allows assets to compound gradually.

ZXSQ's strategy relies on four key principles: holding Bitcoin spot long-term, using options to hedge and reduce volatility, practicing careful custody, and maintaining 0 leverage. The fund reduces volatility from 55% to 37%, comparable to high-tech blue-chip stocks.