Digital Assets Report


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Fund of funds for digital asset quant strategies expands to the UK

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YRD Capital, a fund of funds (FoF) focused on quantitative trading in digital assets is to expand into the UK.

The move follows the fund’s second investment in a UK based fund, and reflects YRD Capital’s aim to focus on the UK and European markets.

YRD Capital constructed a portfolio of systematic funds trading Digital Assets, providing uncorrelated returns, to equity markets, bonds and Bitcoin.

The fund target is to benefit from the high volatility of Digital Assets. YRD Capital also successfully gained positive returns during March 2020, when most funds had significant losses.

Yuval Reisman, who set up YRD Capital in 2017 with Co-founder Elad Gafni, has recently relocated to the UK. The firm hopes to raise awareness and a greater understanding of the new asset class among investors, and to tap into the country’s thriving alternative investment community.

Reisman says: “The UK is the right place to be for YRD Capital. This country has always been open to financial innovation, and its government and regulator hold progressive views on the future of Digital Assets. We made our first investment in a UK based fund in early 2019 and made our second investment last month. We see an increasing number of top tier quant teams coming out of the UK, led by people who worked for the world’s leading prop shops. With the recent volatility in equities markets, and the uncertain period we have entered, we believe that more investors will consider allocating to alternative, uncorrelated, funds.”

YRD Capital’s diversified approach to the asset class continues to generate positive returns even when equity markets and digital assets suffer significant losses. YRD Capital has enjoyed yearly net return of over 20 per cent in all years since its launch in 2017.

Reisman adds: “We have built a firm track record risking our own capital and remain major investors in the fund. We treat clients’ money like our own and manage the risk in a conservative way.

“We have been focused on the space since 2017. We probably engaged with more quant teams trading Digital Assets than anyone else in our sector. We try not to reinvent the wheel, but to take the classic due diligence process of quant funds, and apply it to funds trading Digital Assets.”

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