Man Group, the world’s largest publicly traded hedge fund with $142 billion in assets under management, is moving ahead with plans to launch a crypto hedge fund.
“The firm’s computer-led trading unit AHL is planning to start the fund as soon as the end of the year, said the people, asking not to be identified because the plan is private,” Bloomberg reports.
The London based hedge fund already trades crypto futures, but if it launches a crypto hedge fund it would be one of the first with the entity still assessing counterparty risks and whether crypto strategies are scalable.
The plans are led by Andre Rzym, a partner at Man Group, who earlier this year published a paper “to provide balanced and practical insights for institutional investors seeking exposure to cryptocurrencies.”
Ryzm previously traded at Zurich Capital Markets and is now in charge of alternative markets at Man Group.
While a handful of established US hedge funds have entered the crypto space, none have done so far in Europe as far as we are aware in providing crypto focused hedge fund investment management.
If Man Group goes ahead therefore they’d become one of the first in the world to trade the very high volatility in the crypto space.
As a hedge fund, they’d be able to profit from prices going either up or down, yet the high volatility comes with its own risks as Three Arrows Capital just recently went bankrupt.
Only a small portion of Man Group’s assets would go towards the crypto hedge fund however, a move that would further integrate traditional finance with new money.
Source: https://www.trustnodes.com/2022/11/19/london-hedge-fund-to-start-crypto-boutique