A documented process, applied consistently.
This page explains how Northlight Capital constructs and manages digital asset portfolios — the principles behind every allocation, trade, and risk decision we make on behalf of clients.
Long-term digital asset exposure
The foundation of every client portfolio is a core allocation to established digital assets, held with a multi-year time horizon rather than traded around short-term price movements. Position sizes are set at onboarding based on your objectives and risk tolerance, and adjusted only through a documented rebalancing process — not in reaction to daily market noise.
Active trading where appropriate
Alongside core positioning, we apply active trading selectively — to manage risk around specific events, respond to significant market dislocations, or adjust exposure within agreed parameters. Active trading is bounded by the same position and risk limits as the rest of the portfolio; it is a risk-management tool, not a separate speculative strategy.
Diversification
Exposure is spread across the digital assets we cover, sized according to each asset's role in the portfolio rather than allocated evenly. Diversification here means managing concentration risk within a deliberately narrow, well-understood set of assets — not attempting to hold a broad slice of the market.
Position sizing
Every position is sized against explicit limits agreed with you at onboarding — a maximum allocation per asset, a maximum allocation to digital assets overall, and thresholds that trigger review or rebalancing. Position sizing rules are documented, not discretionary, and are revisited whenever your objectives or circumstances change.
Liquidity considerations
We weigh the liquidity of each covered asset when sizing positions and planning trades, to reduce the risk that a position cannot be adjusted or exited efficiently when needed. Liquidity conditions are monitored on an ongoing basis, not assessed once at the time of initial investment.
Volatility management
Digital assets are materially more volatile than most traditional asset classes, and portfolios are constructed with that volatility in mind — through position sizing, diversification across covered assets, and defined risk limits, rather than through instruments or strategies designed to mask reported volatility.
Research and market analysis
Portfolio decisions are informed by ongoing analysis of market structure, trading volumes, liquidity conditions, and relevant on-chain activity for each covered asset. This analysis is reviewed on a regular, defined cadence, and feeds into rebalancing and risk-management decisions rather than one-off market calls.
Risk controls
Every portfolio operates within a documented risk framework: position and allocation limits, diversification requirements, liquidity thresholds, and defined triggers for review. We do not use leverage to increase client exposure. Risk controls apply uniformly across client portfolios and are not adjusted informally.
Transparency
You have real-time visibility into your holdings, recent activity, and account status through the client portal, along with regular statements written in plain language. Portfolio decisions are explainable by reference to documented rules, not after-the-fact justification.
This page describes our investment process and does not constitute a guarantee of performance. Digital assets carry substantial risk, including the risk of total loss. Read our full Risk Disclosure.