- Flagship Diversified Alpha fund returned 20.1% last year, outperforming hedge fund indices.
- Digital Liquid venture fund returned 138.2%, beating Directional and DeFi indices and traditional Finance indices.
London-based Nickel Digital Asset Management (Nickel), Europe’s leading regulated and award-winning digital assets hedge fund manager, has delivered strong performance for its flagship multi-strategy Diversified Alpha Fund and its fundamental Digital Liquid Venture Fund.
Diversified Alpha returned 4.8% in December, taking it to 20.1% for 2023, while the Digital Liquid Venture Fund gained 32.4% last month for a cumulative 138.2% for the year.
The performance of Diversified Alpha, which is a non-directional multi-manager fund, strongly outperformed major indices in its sector, including the HFRX Absolute Return Index (3.0%), the HFRX Global Hedge Fund Index (3.1%) and the HFRX Equity Market Neutral Index (4.2%).
The Digital Liquid Venture Fund, which is designed to capture structural growth of the broader digital assets space outside Bitcoin, outperformed the Bloomberg Galaxy DeFi index return of 57.5% last year. Against traditional finance indices, the gap was marked with the FTSE-100 returning 2.4%, the S&P500 24.23%, and the Nasdaq 100 53.8%.
Nickel Digital was founded five years ago by alumni of Bankers Trust, Goldman Sachs and JPMorgan to provide institutional-grade access to the digital assets market. Its Diversified Alpha Fund is a non-directional multi-strategy digital asset fund that wraps a portfolio of attractive but hard-to-access and capacity-constrained strategies into a single, investible fund with a historical volatility of below 10%. It is designed to generate non-correlated returns in all market environments, relying on a range of market signals and factors.
Underlying strategies include momentum and mean reversion trades, relative value, statistical arbitrage and systematic trading. It is underpinned by robust risk management allowing for 24/7 real time risk control.
Its Digital Liquid Venture Fund is designed to capture structural growth of the broader digital assets space outside Bitcoin, spotting early winners in Layer 1, Layer 2 protocols, and Decentralised Finance as the area of greatest financial innovation. The fund is an actively managed, research-driven vehicle aiming at identifying early winners and capturing structural expansion of this space.
The portfolio dynamically allocates to exchange-traded digital tokens based on their use cases, competitiveness, leadership position, liquidity criteria, and a range of network-related ratios.
About Nickel Digital Asset Management
Nickel Digital Asset Management (www.nickel.digital) is a London-based FCA-authorised and CFTC-registered investment manager that offers a range of digital asset strategy solutions for institutional investors. Its mission is to provide a gateway for traditional investors into the digital assets market across a broad range of risk profiles.
The firm pursues a range of systematic strategies dedicated to the digital assets market, with its flagship multi-strategy non-directional fund focusing on alpha generation.
Nickel is led by a senior team of traders and investment professionals with experience gained in major Wall Street banks, such as Bankers Trust, Goldman Sachs, JPMorgan, and Morgan Stanley, as well as global hedge funds.
Risk management is the core of Nickel’s approach to investment management. This was evidenced in March 2020 and May 2021 when Nickel preserved the value of investor capital and delivered positive returns at the time of market implosion. Nickel was named by Opalesque, the hedge fund advisory firm, as being amongst the top 2% of global asset managers “who delivered during the meltdown“.
Nickel Digital has won a number of industry awards since its inception.
Among others, there are HFM EuroHedge Emerging Manager Awards (2020), HFM Quant Performance Award (2021), Best 12-Month Risk-Adjusted Performance by Hedgeweek Digital Asset Awards (2022), Best Digital Asset Manager Europe 2022 by PAN Finance (2022), and two 2023 Hedgeweek awards for best sustained risk-adjusted returns over 12 and 36 months.
Nickel Digital Asset Management Ltd is authorized and regulated by the UK’s Financial Conduct Authority (“FCA”), registered with the Commodity Futures Trading Commission (“CFTC”), and is a member of the National Futures Association (“NFA”)
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