London-based Nickel Digital Asset Management (Nickel), a regulated European digital assets hedge fund manager, recorded strong performance with its flagship multi-strategy Diversified Alpha Fund and its fundamental Digital Liquid Venture Fund in 2023.
Diversified Alpha returned 4.8% in December taking it to 20.1% for the year, while the Digital Liquid Venture Fund gained 32.4% last month for a cumulative 138.2% for 2023.
The performance of Diversified Alpha, which is a non-directional multi manager fund, strongly outperformed major indices in its sector including the HFRX Absolute Return Index (3.0%); the HFRX Global Hedge Fund Index (3.1%); and the HFRX Equity Market Neutral Index (4.2%).
The Digital Liquid Venture Fund, which is designed to capture structural growth of the broader digital assets space outside Bitcoin, outperformed the Bloomberg Galaxy DeFi index return of 57.5% last year. Against traditional finance indices the gap was marked with the FTSE-100 returning 2.4%, the S&P500 24.23% and the Nasdaq 100 53.8%.
Nickel Digital’s Diversified Alpha Fund is a non-directional multi-strategy digital asset fund which wraps a portfolio of attractive but hard-to-access and capacity-constrained strategies into a single, investible fund with a historical volatility of below 10%. It is designed to generate non-correlated returns in all market environments relying on a range of market signals and factors.
Underlying strategies include momentum and mean reversion trades, relative value, statistical arbitrage and systematic trading. It is underpinned by robust risk management allowing for 24/7 real time risk control.
The Digital Liquid Venture Fund is an actively managed, research driven vehicle designed to capture structural growth of the broader digital assets space outside bitcoin, spotting early winners in Layer 1, Layer 2 protocols, and Decentralised Finance as the area of greatest financial innovation.
