Tyr Capital Partners, the team behind crypto arbitrage hedge fund, Tyr Capital Arbitrage SP, is setting up an actively managed long-only fund to launch next year, following increasing demand from investors.
The fund will offer investors exposure to the potential long-term rewards of a portfolio of cryptocurrencies.
The structure and strategy will be tested this year with a small number of private investors, including the fund’s founders. Tyr Capital Partners predicts the fund will open for investment in 2022.
The fund comes at a time when there is a growing hunger to go-long on cryptocurrencies. An increasing number of retail investors, institutional investors and even bitcoin miners are holding onto bitcoin for increasingly longer periods of time, as conviction over the price strengthens and deepens. Glassnode’s recent “BTC Percent Supply Last Active 2+ Years” indicator showed that Bitcoins active within the last two years had reached a three-month low to 45.364 per cent.
Tyr Capital Arbitrage SP has consistently delivered high returns with one of the highest average Sharpe Ratios in the industry. 2020 saw the arbitrage fund deliver returns of over 35 per cent at a Sharpe Ratio of 6.5.
Nick Norris, CEO of Tyr Capital Partners, says: “We are very excited to get this fund up and running. Both our own research and the conversations we’ve been having over a number of months with investors all point toward a growing appetite to incorporate long strategies as part of a diversified portfolio. Our flagship fund has performed exceptionally well since inception and now we’re branching out at the request of our investors. The Partners at Tyr Capital are investing in this fund as well, as we believe in the potential and opportunity that crypto presents as it moves towards a more stable, institutional-friendly asset.”
Ed Hindi, Chief Investment Officer at Tyr Capital Partners, says: “The nascent crypto market remains highly risky and speculative. Diversifying your portfolio along the lines of market neutral pro-volatility strategies and beta exposure leads to higher and less volatile returns over the medium and long term. Expanding our product range from our flagship market neutral and pro-volatility arbitrage fund to include an actively managed long only fund was the natural next step towards establishing Tyr Capital as an industry leader in the digital asset management industry.”
