London-based Nickel Digital Asset Management (Nickel), Europe’s leading regulated and award-winning digital assets hedge fund manager has announced its systematic Diversified Alpha Fund has delivered a record-breaking annual performance.
This is a non-directional multi-strategy fund, which wraps a portfolio of attractive but hard-to-access and capacity-constrained digital asset strategies into a single, investible fund.
Data (1) from BarclayHedge shows it achieved a net return of 34.9% in 2024, the strongest performance in the Fund’s four year history. Notably, the Fund gained 3.8% in December, despite BTC declining by 3% and ETH by 10%, highlighting the Fund’s uncorrelated nature.
Overall, the fund gained in 11 out of 12 months last year, including in each of the four months of 2024 when Bitcoin posted a negative performance.
Rolling 12-month volatility of the fund is 5.1%, less than 1/10th of the underlying digital assets market and the correlation with Bitcoin is 0.06.
The 2024 net return on Diversified Alpha significantly outstrips the returns of 8.2% and 6.9% for the HFRX Equity Market Neutral Index (Flagship Funds) and the HFRI Multimanager Podshop Index, respectively.
As Fund’s AUM increased by 150% last year, the Fund is on track to soft close in the coming months to protect the returns of existing investors.
Nickel Digital was founded in 2019 by alumni of Bankers Trust, Goldman Sachs and JPMorgan to provide institutional-grade access to the digital assets market. Its Diversified Alpha Fund wraps a portfolio of attractive but hard-to-access and capacity-constrained digital asset strategies into a single, investible fund with a realized 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.
