In this episode, Amberdata sits down with Berk Ozdogan, CEO and Co-Founder of FC Genesis, to unpack his journey from Wall Street trading desks to building algorithmic strategies in crypto. They dive into the fund’s data-driven approach, the launch of their Hyperliquid vault, and Berk’s hot takes on the future of market infrastructure and risk management in digital assets.
In the latest episode of the Amberdata Podcast, listeners are introduced to Berk Ozdogan, CEO & Co-Founder of FC Genesis, an algorithmic trading fund making significant strides in digital asset markets. With a storied career spanning major financial institutions like JP Morgan and Bank of America, Berk takes us through his transition from traditional finance (TradFi) to the innovative and rapidly evolving world of cryptocurrency.
Berk discusses his beginnings as an electrical and computer engineer from UT Austin and his serendipitous entry into the finance sector, starting with an internship at Merrill Lynch during the tumultuous pre-2008 financial crisis. This early exposure to the dynamic environment of a trading floor, combined with his engineering background, set the stage for his future endeavors in high-frequency trading.
Berk shares his journey across prominent institutions like Deutsche Bank and JP Morgan, highlighting his growth from an engineer to leading operations in high-frequency and algorithmic trading. These experiences honed his skills in risk management and trading strategy, ultimately fueling his interest in leveraging these disciplines in the crypto space.
The podcast details Berk’s shift from Wall Street to cryptocurrency. In October 2020, he envisioned a decentralized exchange solution that integrated the structures of TradFi with blockchain technology, aiming for regulatory clarity and client demand satisfaction. Despite setbacks due to regulatory uncertainties, Berk’s ambition laid the groundwork for the eventual founding of FC Genesis.
At the heart of FC Genesis is an innovative approach to asset management, emphasizing disciplined risk management and non-emotional, systematic trading. Berk’s mantra, “Preserve first, appreciate next,” reflects a commitment to safeguarding capital while pursuing growth opportunities in the volatile crypto market. Unlike traditional setups, FC Genesis aligns the incentives of its operators directly with client success, eschewing salaries in favor of a performance-based compensation model.
Berk elaborates on the differences between algorithmic trading in mature markets like FX and the relatively nascent crypto space, noting the unique challenges and opportunities. At FC Genesis, signal-based trading powered by machine learning models is central to their strategy. Berk highlights their focus on maximizing efficiency and adapting quickly to market changes through frequent recalibration of their systems.
The transition from individual algos to a generalized machine learning model is described in detail, supported by efficient data pipelines and partnerships, such as with Amberdata. This evolution allows FC Genesis to predict market directions accurately and manage risks deftly, setting itself apart with its sophisticated infrastructure and cutting-edge technology.
FC Genesis’s recent launch of the hyper-liquid vault on September 12th showcases their progress and success. Berk emphasizes the importance of scaling responsibly, ensuring investor experiences are prioritized over rapid expansion. He sheds light on future directions, including greater integration with decentralized exchanges, securing institutional partnerships, and exploring potential tokens aligned with their ethos.
The discussion concludes with Berk’s assessment of existing infrastructure gaps in the crypto ecosystem, particularly around liquidity, credit, and efficient capital movement. He expresses optimism about the integration of institutional players into crypto, noting their gradual yet decisive participation will ultimately transform the landscape. Berk’s deep understanding and strategic insights from TradFi offer valuable perspectives on marrying traditional financial principles with innovative blockchain solutions.
Berk Ozdogan’s journey from an ambitious engineer on Wall Street to a key figure in crypto’s algorithmic trading scene underscores the transformative potential of digital assets. As FC Genesis continues to grow under his leadership, its commitment to thoughtful risk management and technological innovation positions it as a formidable player in the digital asset ecosystem.