Hedge fund manager Eric Jackson is launching EMJX, a crypto-focused treasury company that aims to limit downside risk while still participating in price gains. EMJX will invest in bitcoin, ethereum, and smaller cryptocurrencies, using proprietary AI models for hedging. Backtests show a 31% return this year, outperforming Strategy Inc. shares.

Jackson believes crypto markets offer richer data sets than traditional assets, allowing EMJ to study market participant behavior in real time. The firm will leverage its stock-picking experience for smaller cryptocurrencies, citing Carvana as a successful example. Jackson emphasizes the potential impact of being right on a handful of investments for EMJX’s overall value.

Read more at Yahoo Finance: EMJ’s Jackson aims to take volatility out of crypto