Oregon based Blockchain hedge fund manager up 259.65% net through April

Stonegate Capital said that its Stonegate Octic AllWeather Blockchain Master Fund returned 259.65% net of fees as of April this year compared to its benchmark, the HFRI Cryptocurrency Index which is down 17.48% during the same period. The fund is managed by Octic Capital Management, a multi-strategy alternative asset manager focusing on relative value trading strategies in crypto markets

Since the fund's inception in November last year, the fund is up 530.92% (gross), Stonegate said in its report.

Opening to outside capital and limiting capacity to $50 million

At the same time, Stonegate founder, CEO and portfolio manager John McCorvey III announced plans that the hedge fund is limiting its capital capacity to $50 million and would open to outside

investors by this year.

He added, "Our team has had the great fortune to able to fine tune our models trading live in both parabolic up and parabolic down markets since beginning our investment strategies in November 2017. It's still a very early market, with a tremendous amount of inefficiencies that will likely persist longer than a year or two due to the odd market micro-structure of cryptocurrency. As we navigate these markets I'm often reminded of my time at Trillium Trading (formerly Datek) and hearing the stories from the biggest equity traders of 98-99'. The cryptocurrency markets are reminiscent of that era's volatility, valuation, and even market microstructure."

Corvey explained that while valuation (mainly of ICOs) will come in, volatility will likely stay substantial until natural consumers of derivatives, such as pension funds, come in, which will lead to thickening of volatility desks since theta sel......................

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This article was published in Opalesque's New Managers a top-down monthly analysis, news and research publication on the global emerging manager space.