Syz Group has partnered with Crest, the hedge fund selection arm of Hong Kong crypto manager CMCC Global, to launch SyzCrest Digital Uncorrelated, a new fund of crypto hedge funds, which will be available to investors from 1 July.
The firms say the strategy for fund raising has been designed for the fund to scale quickly to $300 million with capacity options provided to early investors.
Syz Capital, Syz Group’s alternatives business will be the investment manager of the strategy with CMCC Global acting as sub adviser.
SyzCrest is the industry’s first alpha-focused crypto portfolio to be managed by a banking group, and as an additional first, is a monthly liquidity product.
The ‘all weather’ strategy is designed to produce positive returns in both bull and bear markets, throughout the cycle. According to a press statement, the strategy leverages the volatility, fragmentation, and inefficiencies of this nascent asset class to target returns between 5-10% in a bear market and 35%-plus in a bull market, primarily via market neutral strategies. Directionality will be added to the portfolio via trend following (CTA/momentum) strategies.
The directional allocation will leverage SyzCrest’s proprietary tools for cycle stage and strength assessment. The portfolio will be reviewed to rebalance monthly using quantitative simulations to optimize specifically for Calmar ratio.