Top Trimmed, Risk Managed – Outperformance Through Tactical Cuts

What We Got Right ✅

➕ Timely Exit Ahead of Weekend Dip
We reduced exposure on Friday as we expected the absence of institutional flows to trigger a weekend correction. This move, especially in altcoins, helped us sidestep much of the downside and preserve capital.

➕ Staying Overweight BTC in a Choppy Market
Bitcoin maintained relative strength, even as market momentum cooled. Our continued overweight in BTC helped cushion the portfolio and reduced exposure to higher-beta altcoin volatility.

➕ Trimmed Altcoin Exposure Before the Worst of the Dip
We reduced our altcoin allocation—especially Solana—before the sharp pullback on Thursday. This proactive trimming helped us avoid the brunt of the underperformance and protected portfolio performance during a risk-off day for high-beta assets.

Fine-Tuning Our Approach ⚖️

? Could Have Cut Exposure More Sharply as Momentum Faded
While we anticipated a pullback, we opted to maintain some exposure in case a second leg higher emerged. This decision limited our downside protection slightly but kept us exposed to potential upside.

✅ Risk Still Well Managed
Despite some residual positioning, our large cash buffer (40%) and continued BTC bias helped us outperform our benchmark and stay positioned for re-entry when conditions improve.

Key Lessons

? Institutional Absence = Weekend Risk
Even during strong trends, ETF pauses—especially heading into weekends—can lead to sharp drops in liquidity and price.

? Trimming Into Strength > Chasing Continuation
Disciplined trimming during peak momentum remains one of our most effective risk tools, especially in alt-driven cycles.

? Macro & Flows Still Dictate Rotation
From hawkish Fed signals to GDP surprises and rotating ETF flows, macro + institutional behavior remain our best compass for sizing risk.

Final Takeaway

This week proved the value of discipline. We trimmed exposure ahead of the weekend as expected volatility emerged, protected capital during a choppy stretch, and stayed concentrated in BTC—the most resilient asset throughout.

Altcoins underperformed sharply, and momentum faded across the board. But with ETF flows still largely supportive and macro risk skewed to the upside, our elevated cash position gives us flexibility to act fast when conditions turn.

Understanding Our Benchmark and Positioning Terms

Our benchmark is a market-cap weighted index composed of Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) — the three most widely held and institutionally tracked assets in the space. Weightings are determined based on each asset’s relative market capitalization at the start of the review period.

When we refer to “neutral weight,” we mean a position aligned with the benchmark weight. An “overweight” position indicates we hold a larger allocation to that asset than its benchmark weight, reflecting higher conviction or expected outperformance. Conversely, an “underweight” position means our allocation is below the benchmark weight, typically due to near-term risks or weaker conviction.