January 16, 2025 (Globalinvestorideas.com Breaking Stock Market News and Commentary ) London-based Nickel Digital Asset Management (Nickel), Europe’s leading regulated and award-winning digital assets hedge fund manager has announced its systematic Diversified Alpha Fund has delivered a record-breaking annual performance.
This is a non-directional multi-strategy fund, which wraps a portfolio of attractive but hard-to-access and capacity-constrained digital asset strategies into a single, investible fund.
Data (1) from BarclayHedge shows it achieved a net return of 34.9% in 2024, the strongest performance in the Fund’s four year history. Notably, the Fund gained 3.8% in December, despite BTC declining by 3% and ETH by 10%, highlighting the Fund’s uncorrelated nature.
Overall, the fund gained in 11 out of 12 months last year, including in each of the four months of 2024 when Bitcoin posted a negative performance.
Rolling 12-month volatility of the fund is 5.1%, less than 1/10th of the underlying digital assets market and the correlation with Bitcoin is 0.06.
The 2024 net return on Diversified Alpha significantly outstrips the returns of 8.2% and 6.9% for the HFRX Equity Market Neutral Index (Flagship Funds) and the HFRI Multimanager Podshop Index, respectively.
As Fund’s AUM increased by 150% last year, the Fund is on track to soft close in the coming months to protect the returns of existing investors.
Nickel Digital was founded in 2019 by alumni of Bankers Trust, Goldman Sachs and JPMorgan to provide institutional-grade access to the digital assets market. Its Diversified Alpha Fund wraps a portfolio of attractive but hard-to-access and capacity-constrained digital asset strategies into a single, investible fund with a realized 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.
Footnotes
- Sources: BarclayHedge, HFR
About Nickel Digital Asset Management
Nickel Digital Asset Management (www.nickel.digital) is a London-based FCA-authorised and CFTC-registered investment manager that offers a range of digital asset strategy solutions for institutional investors. Its mission is to provide a gateway for traditional investors into the digital assets market across a broad range of risk profiles.
The firm pursues a range of systematic strategies dedicated to the digital assets market, with flagship offering of market-neutral arbitrage and multi-strategy non-directional funds, focusing on alpha generation.
Nickel is led by a senior team of traders and investment professionals of experience gained in major Wall Street banks, such as Bankers Trust, Goldman Sachs, JPMorgan, Morgan Stanley, as well as global hedge funds.
Risk management is the core of Nickel’s approach to investment management. This was evidenced in March 2020, May 2021 when Nickel preserved the value of investor capital and delivered positive return at the time of market implosion. Nickel was named by Opalesque, the hedge fund advisory firm, as being amongst the top 2% of global asset managers “who delivered during the meltdown“.
Nickel Digital has won a number of industry awards since its inception.
Among others, there are HFM EuroHedge Emerging Manager Awards (2020), HFM Quant Performance Award (2021), Best 12-Month Risk-Adjusted Performance by Hedgeweek Digital Asset Awards (2022), Best Digital Asset Manager Europe 2022 by PAN Finance (2022), and two 2023 Hedgeweek awards for best sustained risk-adjusted returns over 12 and 36 months.
Nickel Digital Asset Management Ltd is authorised and regulated by the UK’s Financial Conduct Authority (“FCA”), registered with the Commodity Futures Trading Commission (“CFTC”) and is a member of National Futures Association (“NFA”)
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