
Odds on Open Inside the Billionaire-Backed Prediction Markets Hedge Fund
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Aug 13, 2026 Camilo Saravia, founder of BlueWalker Capital and builder of a systematic fund for prediction markets. He explains taker vs maker strategies, how event contracts differ from equities, and why insider flow can speed truth discovery. He describes where edge comes from — proprietary data, speed, and team — and lays out how to recruit, build infrastructure, and research in this emerging asset class.
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Binary Event Risk Versus Equity Fundamentals
- Event contracts differ from equities because their underlying is a binary occurrence, not free cash flows, creating different adverse selection dynamics.
- That binary nature raises adverse selection and requires distinct pricing and risk models versus equities.
Why Insider Flow Can Be A Feature Not A Bug
- Insider flow in prediction markets creates asymmetric information but Camilo treats it as a feature that reveals truth fast because markets are money-backed.
- He stresses this is not endorsement of illegal insider trading but an observation about information incentives.
Invest In A Proprietary Prediction Market Dataset
- Build proprietary, high-quality data collections including order book deltas and on-chain fills to create systematic edge.
- BlueWalker records billions of data points daily and built in-house tooling after testing providers to improve experiments and alpha.

