Abraxas Capital has achieved a 25.9% annualized return on its gold arbitrage strategy, leveraging hedged short positions to capitalize on funding rates. The firm, known for its significant market influence, currently holds a 5x-leveraged short position with an initial margin of approximately USD 3.51 million. This position has been maintained for 144 days, generating USD 359,000 in cumulative funding rate settlements, equating to a 10.2% return on the initial margin. The strategy involves maintaining the position size consistently, with only minor adjustments, allowing Abraxas Capital to effectively exploit funding rate differentials. This approach underscores the firm's adeptness in navigating complex market dynamics to secure substantial returns.