Tephra Digital, a crypto-focused hedge fund backed by Jefferies’ Leucadia Asset Management, posted an 11% gain in May, outpacing many of its peers as digital asset markets rallied sharply, according to a report by Financial News.
The report cites unnamed sources familiar with the matter as revealing that the fund’s year-to-date return now stands at approximately 7%.
Launched in June 2022, Tephra, which manages approximately $140m in assets, made headlines in 2024 with a 100% annual return, solidifying its reputation as one of the stronger performers in the crypto hedge fund space.
Tephra’s gains in May were driven by winning directional bets across major cryptoassets, particularly ether (ETH), which surged more than 35% during the month, outperforming all other top-tier digital assets. Bitcoin (BTC) also contributed to broader market gains, hitting an all-time high of nearly $112,000 and ending the month up 10%.
Other crypto hedge funds also posted positive returns amid a broader $300bn market rally.
Pythagoras Investments, a US-based digital asset manager with $190 million in AUM, saw its Alpha Long Biased strategy rise 15.8% in May. The firm’s Absolute Return strategy added 3.8%, according to people with knowledge of the performance figures.
Edge Capital meanwhile, which oversees $450m in assets, gained 1.2% last month, pushing its year-to-date performance to 5.2%, while London-based Fasanara Digital, managing $320m, delivered a 1% return in May, extending its YTD gain to 4.5%.
