In September, Dopamine Investments achieved a return of +0.2%, bringing the fund’s total performance since its launch in May 2025 to +32.5% net of all fees.
Timely Steps to Reduce Market Risk
During the third quarter, the fund gradually reduced allocations to cryptocurrencies within strategies focused on holding and trading altcoins. This approach proved crucial in mitigating the impact of the liquidation cascade that hit the market during the night of October 10–11.
Within just two hours, more than $19 billion in leveraged futures positions were liquidated, causing a temporary drop in altcoin prices by 35% to 99%. The initial sell-off was triggered by an escalation of the trade conflict between the U.S. and China, which caused panic across the market. The excess of leveraged positions combined with faulty USDE stablecoin quotations on certain major exchanges led to a liquidation spiral, pushing the prices of some cryptocurrencies on futures markets nearly to zero.
A sharp rebound followed shortly after, with most cryptocurrencies recovering to 70–90% of their previous levels. However, a portion of highly leveraged traders was permanently liquidated during the move.
Positive Performance Amid Market Stress
We can confirm that our fund did not experience any liquidations. Instead, the fund benefited from the liquidation events of other market participants – specifically by providing USDC liquidity on the decentralized exchange Hyperliquid, which resulted in a short-term capital appreciation of approximately 10%.
Thanks to this and the timely reduction of market exposure at the end of the quarter, the fund remained slightly positive for October before fees.
Additionally, all DeFi protocols in which the fund holds positions operated without any disruptions during this highly volatile period – an important confirmation of their resilience.
Our Strategy Proved Effective in a Highly Volatile Market
This event confirmed that the Dopamine Investments strategy is designed to maintain portfolio stability even during periods of elevated volatility, while effectively capturing opportunities in the digital asset market with a strong emphasis on capital preservation and long-term value growth.
The fund continues to pursue its objective of delivering consistent results with a balanced risk–return profile in the dynamic environment of digital assets.
