Leading cryptocurrency hedge fund, Tyr Capital Arbitrage SP, has teamed up with HedgeGuard, a provider of portfolio management software and services for traditional and crypto asset managers, to increase greater operational efficiency across its fund activities.
With HedgeGuard’s technology, Tyr Capital will have faster, more agile oversight across its order books, with seamless risk management and real-time tracking and reconciliation of fund positions. The technology easily integrates with third parties so that Tyr Capital’s activity across custodians, administrators, exchanges and wallets remains at its fingertips at all times.
Costs associated with operational management processes are a millstone around the neck of fund managers and clients. Day-to-day fund operations cost the industry approximately $130bn per year, globally, due to lack of transparency, poorly integrated software and problems with risk management and compliance. By making its operational systems cleaner and more efficient, Tyr Capital is significantly reducing costs, which can be passed on to its investors. The technology is already used by globally renowned hedge funds and traditional asset managers.
The integration with HedgeGuard is a pre-emptive step by Tyr Capital to address an increasing number of large institutional investors that are considering a move into digital assets.
Commenting on the selection of HedgeGuard, CEO of Tyr Capital, Nick Norris, said:
“Like many funds and large players, we believe increased institutional involvement will see the crypto market reach maturity. But there are fundamental inefficiencies that need to be addressed and one of those is managing operational processes. By integrating a front-to-back office system like HedgeGuard with our platform, we’re taking the financial headache of operational costs away - creating additional transparency and security whilst passing on savings to our investors.
“At Tyr Capital, we continue to deliver double digit returns with one of the industry’s best sharpe ratios. Now, by teaming up with HedgeGuard, we are pushing the boundaries of our performance even further. The barriers to mass institutional investment in crypto assets are coming down, and we look forward to a deeper collaboration to ultimately reinvent and rebuild the tangled plumbing of fund operations.”
HedgeGuard has said it expects to see the number of hedge funds active in the space to increase four-fold over the next three years.
Imad Warde, CEO of HedgeGuard, commented:
“We’ve been speaking with our traditional finance clients—big banks and institutions—and we can confidently say that there is an appetite for crypto as an investment when the time and infrastructure is right. That is the journey we are on and those of us who are already in the crypto assets space are working hard to rewire fund management systems to make managers’ lives easier and more profitable. Working with Tyr Capital gives us the insight of the high-performing professional trader, which is essential to fine tuning our offering.”