Cryptocurrency hedge funds are still a fairly new investment vehicle, but we're already getting a pretty good idea of how they stack up against simple passive investments in two common underlying currencies. The bitcoin price and ethereum price have both plunged this year, leaving cryptocurrency hedge funds scrambling for cover.
[klarman]
Q2 hedge fund letters, conference, scoops etc
However, performance data shows that in a down year, investing in those two cryptocurrencies via hedge funds seems to offer slightly better performance than a passive investment in a portfolio consisting of 80% bitcoin and 20% ethereum. Interestingly, cryptocurrency hedge funds were able to generate alpha against all the benchmarks they were compared to.
The year of the cryptocurrencies
The September Eurekahedge report...
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