This crypto hedge fund has grown its AUM by 400% over the previous 4 months

 This crypto hedge fund has grown its AUM by 400% over the previous 4 months

CryptoSlate obtained an replace on Strix Leviathan, a Seattle-based crypto hedge fund, The workforce has been in enterprise since 2018 and completely trades the crypto markets utilizing proprietary buying and selling instruments and algorithms.

Strix Leviathan’s Fund, which operates a scientific funding method by taking lengthy and brief directional positions within the cryptocurrency markets.

The Fund’s system contains quite a lot of risk-on/risk-off fashions together with algorithmic momentum, trend-following, and pairs buying and selling, with its major goal of compounding investor capital over full market cycles with superior risk-adjusted returns.

The latter (risk-adjusted returns) is used to measure an funding’s return by analyzing how a lot threat is taken in acquiring the return. This implies not being a degen dealer and placing one’s total portfolio maxed out to 125x leverage on the road. As a substitute, such a technique ensures the biggest doable returns with strategically minimized threat (by way of capital).

2020 fund efficiency

Danger-adjusted returns in 2020 had been 124%, with the biggest month-to-month mark in November 2020, with income of 31%, whereas its worst in Could, with losses of slightly below 11%. Bitcoin (and different cryptocurrencies) had been particularly unstable throughout these durations, which can have contributed to the sizable income and losses.

The returns had been a ten-fold improve in comparison with 2019, when the fund returned a comparatively menial 10% to purchasers (however sufficient to make TradFi bros jealous.)

The Fund had superior efficiency in comparison with different funds just like the Bitwise 10 Index (BITX) and Bloomberg Galaxy Crypto Index (BGCI) by delivering on the upside of the asset class however doing so with about half of the volatility of a buy-and-hold method.  

The workforce has quadrupled their analysis and analyst workforce, has digitized their total investor onboarding circulate to simplify fund subscriptions and has up to date their investor portal with reporting and attribution monitoring of their quest to be essentially the most clear fund within the house. 

The drawdowns had been considerably lesser as effectively. Nest Fund solely noticed a max drawdown of 24%, whereas BITX and BGCI noticed 71.8% and 75.6% drawdowns respectively.

Strix Leviathan is domiciled in Delaware and the BVI, and has a minimal subscription of $50,000 with month-to-month and quarterly redemptions. Its payment construction is a 2% administration payment on principal capital and a 20% efficiency payment on income (the business commonplace). 

All of Strix Levanthan’s cryptocurrencies are held with both custodians Anchorage or Coinbase, and the agency banks with crypto-focused participant Silvergate. The fund makes use of MG Stover as their Third Get together Administrator and Facet Advisors function their compliance consultants.

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