A report gathered about Strix Leviathan’s investment returns revealed that the Seattle-based hedge fund had made a stunning 400% profit in just four months. The company, established in 2018, specializes in the trading of cryptocurrencies by adopting advanced algorithm tools. The hedge fund uses a methodical investment technique to long and short cryptocurrencies by trading with the trend. The firm’s strategy involves different risk models, such as trading with the trend using specific algorithms. Its goal is to multiply investors’ equity within a period using outstanding risk-adjusted returns.
How Did the Firm Fare in 2020?
The risk-adjusted returns refer to the amount of risk staked to get a profit from an investment. Investors should not risk their entire equity in a trade with the expectation of maximum returns. The best strategy must target maximum returns with minimal risk to one’s equity.
The firm made returns on investment of about 124%. November last year witnessed the largest profit of 31%, while May was the least profitable month with just 11%. The volatility seen in the world of cryptocurrencies contributed to the limited gains recorded in this period. Meanwhile, in 2020, the Fund made ten times the profit it made in 2019 as it could only offer its clients just 10% returns. Strix Leviathan Fund outperformed its counterparts such as Bitwise 10 and Bloomberg Galaxy Crypto as it returned adequate profits to its investors.
The firm has augmented its team of researchers and analysts. It has digitalized new investors’ entry into the firm to provide a simple and easy technique of enrolling new entrants. Also, the Fund always makes sure its investor portal is up to date by tracking reports. All these are made to enable the firm to be the most transparent Fund globally.
The Firm Launched a $1.6 Million Seed Round in 2018
In 2018, Strix Leviathan launched a $1.6 million seed round. Joe Montana and Chris McCoy were among the major investors in the investment drive. Jesse Proudman, the company’s founder, also founded Blue Box, a computing firm, which was IBM later investor later divested from his original cloud computing business to cryptocurrencies. In his remark, Proudman stated that he realized that many institutional investors found it challenging to understand how to join the booming crypto investment world as the crypto space is very complicated.
Hence, Proudman launched a platform aimed at providing solutions to institutions intending to join the crypto space. There are too many pairs to trade in the market, coupled with too many exchanges to choose from. The inexperienced traders are some of the challenges the cryptocurrency market is facing. All these are some of the problems Proudman intended to solve through his firm.
Proudman’s team aims t achieving their goals by creating three main features a data ingestion engine to collect data from multiple sources, trading algorithms using the data, and an automatic order for trading. Proudman compared the evolution of cryptocurrencies to the advent of the internet and mobile phones. He sees a considerable prospect in the crypto ecosystem. But he is also worried about the fraudulent activities some scammers use cryptocurrencies for.