Why PURR The Most Asymmetric Bet In The World (Entire Thesis) - Capital Flows & Jaymes Rosenthal

**Robbie** (0:00)
Let's give them some Lovaton, get them fired up. Guys, welcome to the show.
Jaymes, thank you just to start off for the $10. That was, you did not need to do that yesterday. Thank you, man.

**Jaymes Rosenthal** (0:12)
Hell yeah, you gotta support the other creators out there. Now, I'd like it back because I'm poor now, because I have a Bitcoiner, and I'm not sure what to do. If you don't mind, I'll send that Venmo request back real quick.

**Andy** (0:28)
No problem there, we support you. Yeah, thanks for coming on, guys.

**Robbie** (0:32)
Been big fans watching both of you both on the show. Capital Flow has been following your X account. Just to disclosures, we have a massive position in Purr over here as well. We have people in the chat that have been very bullish on this.
What really caught our attention was this idea of this gamma squeeze.
Before we get into the purr trade, I'd just love to hear a bit about your backgrounds. How long have you been trading? How did you guys get into this space? Give us a bit of a rundown.

**Capital Flows** (1:03)
Yeah. Well, I appreciate you guys having both of us on. I love the energy of the live stream that you guys are doing. I think it's just a special place. I mean, few people can really pull it off.
We're still going through the trial and error of figuring it out. We're just having a blast. You know, so the entire, you know, I think I started, you know, Capital Flows, I guess it's in 2023 now. And the entire goal that I had with it is mapping the macro regime and then taking asymmetric bets within that. And it's, you know, a very, you know, simple kind of goal. And there's a lot of complexity along the way. But at the end of the day, you know, I've always focused on interest rates, macro liquidity, the credit cycle. And I've always had to do it from a risk taking perspective for either hedging interest rate risk, taking directional views and interest rates, or, you know, anything in that realm. And so there's always been the necessity to say, what are the actual drivers? What's my risk? And what are the largest factors that are moving markets? And so, you know, I've built an entire, you know, suite of strategies and, you know, knowledge over the years. And then I started Capital Flows in 2023, and that's basically the entire breakdown of the macro regime that we're mapping, and also the main bets that you take within that. Because at the end of the day, you know, I believe that diversification is the enemy of exceptional returns, right? You shouldn't expect to outperform the market or have exceptional returns if you diversify it across, you know, a bunch of subpar assets. And so that's really the starting point that, you know, I have for everything. And then myself and Jaymes, Jaymes can talk a little bit about his story. But, you know, we started actively live streaming more, you know, earlier, I guess, this year now. And we have just been focused on taking all the models that I've built, all the knowledge that we have, and synthesizing it down from a risk taker's perspective to say, what are the specific bets that we want to take? Because we're here as risk takers. And so, that's really been the focus. And, you know, the thesis that we have been laying out now on hyperliquid and on PER, the entire goal that we had was, we don't just want to explain the thesis. We want to provide every single tool necessary to execute on that thesis in terms of quantitative models, and then also qualitative thinking.
What is the base of knowledge and even emotional mindset you need to have to go from just having these small swings in your account to bigger swings and what it means to get paid to hold risk? So that's really the, I would say, the overview of Capital Flows. I'll let Jaymes add in there for the kind of experience he's had and all the kind of reps he's had over the years and how he kind of connects that into those macro research pieces.

**Jaymes Rosenthal** (4:14)
Yeah, so I think one thing you guys probably have is you compliment each other well, right? You have a good back and forth. I have to stare at a frog every day, so that's a little bit worse for me. You guys get to stare at each other, which I don't know what's worse. But I come from more of a scalping, trading. I was a poker player. The kind of standard poker player found his way to trading thing, right? And I like to think about the philosophy of trading, the metas, the vibes, the feel, right? And Flows comes at it more from a bottom-up perspective from the foundation of the price of money in the world, right? So he comes from here, I come from there, and we try to work our way towards a very sharpened execution to take big bets, right? And I think that's what we're all here to do, like, educated guesses on financial markets, and, you know, coming into the content space is pretty interesting.