Convexity & Tail Risk

The convexity strategy is built on a simple but powerful principle: systematically acquiring asymmetric payoff profiles where the upside materially outweighs the downside. We deploy capital in thematic option-like positions — early-stage technology companies at structural inflection points in nuclear energy, space, AI infrastructure, and clean energy — alongside explicit options structures on broad indices.

Unlike traditional tail-risk programs that bleed premium during calm markets, our approach is self-financing. SPY put-spreads and VIX calls provide downside protection, while funding shorts in high-yield credit and index futures neutralize the premium drag. The result: meaningful upside in dislocations without eroding returns in calm markets.

The strategy serves a dual purpose: generating absolute returns during volatility spikes through option structures, and compounding through equity positions in companies with convex growth profiles. Current themes include next-generation nuclear, commercial space, AI compute infrastructure, and medical technology.