Crypto Hedge Funds – Where is the Value?
We look at the universe of active crypto hedge funds and observe that by and large they delivered on the promise... at least the ones that survived so far.
Related: MicroStrategy: For Whom the Margin Calls Duke Endowment to the Moon Musk Tweets and Margin Calls
The jury is still out on whether crypto hedge funds can generate meaningful alpha, but many investors seem content to test the waters by investing for the beta instead. And why not? Correlations have been low enough and returns high enough, that some portfolios got a boost even despite the well-documented drawdown losses. And if the past few weeks have taught us anything, it is that the extreme risks inherent in crypto aren’t going anywhere anytime soon.
Today’s news is that Three Arrows Capital founder Su Zhu took to Twitter to try and manage investor fears about insolvency on the tail of the ongoing losses in the crypto markets. Unfortunately, this seems to be a familiar tale these days, and there’s no telling if the next story will come from a small player or a major hedge fund that isn’t normally associated with crypto exposures.
Sign in or register to get full access to all MPI research, comment on posts and read other community member commentary.