MM HFs and cryptocurrencies
Do any of the major pod shops have teams active in cryptocurrencies / digital assets? Especially curious to know if any firms run discretionary L/S strats in this asset class. I've heard about global macro managers like Brevan Howard starting up crypto divisions, but haven't heard much about cryptocurrencies coming from the usual MM suspects.
Based on the most helpful WSO content, there isn't specific mention of major multi-manager hedge funds (MM HFs) actively running discretionary long/short (L/S) strategies in cryptocurrencies or digital assets. However, global macro managers like Brevan Howard have indeed ventured into the crypto space by starting dedicated crypto divisions.
While MM pod shops are known for their market-neutral, highly liquid strategies, cryptocurrencies might not align perfectly with their typical risk constraints and execution style. That said, the space is evolving, and it's possible that some pods are exploring crypto-related opportunities, albeit not widely publicized.
Sources: Are we at peak pod shop?, Credit - Pod Shop/MM vs. Distressed/Special Sits HF, Focusing on Investment Style Fit, "Manual" macro day traders at MM pod funds - whats your strategy?, Macro HF Interviews: Paul Tudor Jones, Louis Bacon and Bruce Kovner
I've only heard about systematic/algo pods.
Has discretionary L/S cryptoassets become a thing, yet?
I only remember the YOLO LO funds from 2017-19, when shorting was not as practical.
The YOLO LO funds seem to have remained the status quo. I heard that there's a few desks doing L/S crypto at Brevan Howard, but nothing outside that.
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