Hedge fund manager plans $1bn crypto fund

Hedge fund manager plans $1bn crypto fund

A business owned by Alan Howard, the billionaire founder of hedge fund Brevan Howard, is reportedly planning to launch a new $1bn venture focused on cryptocurrency hedge funds.

Elwood Asset Management, which manages Howard's personal cypto assets, is currently working on a platform which will design portfolios of crypto funds, a so-called fund of funds, aimed at institutional investors.

Elwood chief executive Bin Ren told the Financial Times that the project's objective is to inject a more selective and quality-based approach to the notoriously risky world of cypto assets, thus avoiding any blow-ups and providing a greater standard of governance for investors.

"Losing traditional assets in the real world is hard," said Ren, former chief investment officer of Brevan Howard's Systematic Investment Group. "In the digital world, it's very easy to lose assets - put in the wrong address for a bitcoin transfer and it's gone forever."

Crypto assets have enjoyed a revival this year and are up by an average of 60% as of the end of July, according to data firm HFR. Yet the 200-300 crypto hedge funds on the market are still viewed as risky investments.

Ren said that Elwood has identified 50 of these funds that would meet its due dilligence standards, such as the use of recognised custodians and a demonstrable track record. Investors would pay a fee to use the service and to access the underlying funds.

Earlier this year Elwood also launched a blockchain-focused exchange traded fund on the London Stock Exchange in partnership with fund manager Invesco.
 

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