London-based digital assets held fund manager Nickel Digital Asset Management (Nickel), has reported strong performance for its multi-manager Diversified Alpha Fund, with the fund outperforming comparable hedge fund indices this year.
Data from Nickel, which was founded four years ago by alumni of Bankers Trust, Goldman Sachs and JPMorgan to provide institutional-grade access to the digital assets market, shows its Diversified Alpha Fund has delivered an estimated +7.5% return YTD to 30 April 2023, strongly outperforming major indices in its sector including the HFRX Absolute Return Index (0.0% YTD); the HFRX Global Hedge Fund Index (+0.3% YTD) and the HFRX Equity Market Neutral Index (-0.4% YTD).
The Diversified Alpha Fund is a non-directional multi-strategy digital asset fund which wraps a portfolio of hard-to-access and capacity-constrained strategies into a single, investible fund with target 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.