Brevan Howard Asset Management’s new digital currency fund was able to minimize losses to a single digit during the crypto market meltdown this year, thanks to the fund’s strategic decision of holding cash in the midst of the turbulent market conditions.
What Happened: The BH Digital Multi-Strategy Fund was down only about 5% this year according to a report by Bloomberg, citing sources.
The fund is yet to fully deploy the $1 billion it raised earlier this year, according to the report, leaving many speculating as to whether the cash holding was a preemptive measure against the volatile cryptocurrency markets.
The cryptocurrency hedge funds tracked by Bloomberg have suffered a staggering 43% average decline due to Bitcoin’s BTC/USD roughly 60% plunge and the recent meltdown of crypto exchange FTX.
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Under the leadership of Chief Executive Aron Landy, Brevan Howard has seen a significant comeback after several years of lackluster performance. Asset levels have surged to $30 billion, a five-fold increase from late 2018 lows, while the firm has grown to more than 700 employees.
Brevan Howard did not respond to Benzinga’s request to comment at the time of publishing.
Price Action: BTC was trading at $17,667, down 0.50% in the last 24 hours, at the time of writing, according to Benzinga Pro data.
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