Quantitative crypto hedge fund Cambrian Asset Management said its two new actively managed trusts, one trading bitcoin and one trading ethereum, will manage downside risk.
- The $200 million fund said in a press release on Wednesday that its management strategy will “manage downside risks and maintain substantial upside potential while seeking to defer taxable events for their investors.”
- Cambrian claims this strategy has helped its hedge funds cut downside volatility by over 70%, while delivering higher returns than a digital asset passive index in the past three years.
- Only institutional and accredited investors can buy into the trusts with an initial minimum investment of $50,000.
- The trusts will charge 4% in management fees, almost double the fees charged by Grayscale Bitcoin Trust, according to Bloomberg.
- Cambrian’s flagship hedge fund has returned 76% this year until August, Bloomberg reported, citing people familiar with the matter.
- The hedge fund was founded by executives from Winton Capital and Millennium Management, and is based in Mill Valley, California.