Cambrian's $70M AI supply chain fund has a hard no-margin rule despite massive conviction in AI's long-term trajectory.
Founder Lonis Hamaili's cofounder turned $100K borrowed against his dad's house into $14M, yet their fund docs explicitly ban leverage. Why?
They're confident about AI's 4-10 year arc and rough timelines, but have zero confidence in quarter-to-quarter price action. $NVDA went 15x over 4 years but had 40-60% drawdowns along the way. Margin on a winning position can still liquidate you during volatility.
Their LP philosophy: "Want to be rich in many worlds, not a trillionaire in one world."
Smart risk management beats max leverage when you're playing a multi-year infrastructure buildout with unpredictable short-term catalysts.
Founder Lonis Hamaili's cofounder turned $100K borrowed against his dad's house into $14M, yet their fund docs explicitly ban leverage. Why?
They're confident about AI's 4-10 year arc and rough timelines, but have zero confidence in quarter-to-quarter price action. $NVDA went 15x over 4 years but had 40-60% drawdowns along the way. Margin on a winning position can still liquidate you during volatility.
Their LP philosophy: "Want to be rich in many worlds, not a trillionaire in one world."
Smart risk management beats max leverage when you're playing a multi-year infrastructure buildout with unpredictable short-term catalysts.