YRD Capital, the world’s first fund of funds (FoF) to focus on quantitative trading in crypto assets, has now accumulated three years of live track record.
This is longer than any of its peers, with an astonishing result of over 20 per cent net return to its investors over each year, even during the unprecedented Covid-19 crisis.
The milestone comes as the crypto industry continues to boom, with major events such as Bitcoin crossing the USDF17,000 valuation mark for the first time in three years, and major players such as Fidelity and PayPal adopting crypto assets.
YRD Capital gained sustained positive returns during the global pandemic. Since the start of the year, it has achieved 18.95 per cent YTD return, with no negative month, its correlation to S&P is 0.22, to gold -0.14, or to Bitcoin price 0.22. Last year the fund returned 22.19 per cent net performance.
The fund was set up in 2017 by finance veterans Yuval Reisman and Elad Gafni to harness the potential of this new asset class, offering a sustainable, risk managed investment strategy for high net worth individuals (HNWI) and family offices.
Commenting on the fund’s performance, Elad Gafni, cofounder and CIO of YRD Capital, says: “With the recent volatility in equities markets, and the uncertain period we have entered, demand from investors has been steadily increasing. Despite the unprecedented and far reaching impact of Covid-19 we have been successful in delivering solid performance to our clients, with a level of revenue growth that exceeded most people’s expectations.
“Our expertise, coupled by our diversified approach to the asset class, offers a winning formula that is capable of generating positive returns whenever markets go up or down, as we profit from the volatility of crypto assets. Since our launch we’ve enjoyed a yearly net return of over 20 per cent during each one of our three years of trading and we hope to continue to build on this steady track record of growth as more investors become aware of this once in a decade investment opportunity.”
Findings from a recent PWC report revealed that the number of crypto hedge funds continues to rise. The total assets under management of crypto funds worldwide doubled from 2018 to the end of 2019 to USD2 billion, and this number is expected to triple by the end of this year.
“Investors need not worry about Bitcoin volatility when investing with YRD,” says YRD Chairman Ian Morley. “The managers we select are experts in arbitrage and thereby reduce the volatility of the crypto markets. Risk is then further reduced by diversification across a number of managers that is typical of the safety first approach of FOFs like YRD.”
