Esoteric Capital Partners is the first behavioral crypto fund.
We believe there is a wealth of academic research in psychology, economics, and network science that is underapplied in investing generally, and with cryptoassets in particular. Our goal is to develop systems that reliably leverage behavioral economics to pick smart investments and deliver excess returns for our partners.
We believe that, right now, the valuation of most cryptoassets is primarily grounded in speculation. In many cases, it is easier to predict changes in perceived value than to predict long-term winners in the blockchain space (though we aim to do both). Given the unique aspects of the token investment environment—markets which never close, assets associated with companies which have no products or revenue, a more active news/rumor mill, and fewer barriers to mass-market investors—a behavioral approach is particularly apt.
Blockchain technologies may be new, but market irrationality, cognitive bias, and behavioral price distortions are not. Investment approaches built around these concepts have been top in traditional markets (e.g. Nobel Prize-winner Richard Thaler’s fund), and we aim to bring philosophically similar approaches to digital assets.