Vision Hill Advisors’ Crypto Hedge Fund Report for Q4 2018 Shows Surprising and Shocking Results


On Tuesday, February 19, Vision Hill Advisors published their findings on crypto hedge fund returns for the fourth quarter of 2018. In general, they were able to witness some growth in comparison to the likes of bitcoin (BTC) and “passive indices”.

As shared in the publication,

“actively managed crypto hedge funds outperformed bitcoin by +24.7%, the Bitwise 10 Large Cap and Bitwise 20 Mid Cap by +27.1% and +31% respectively, the Bletchley 10 and Bletchley 20 Indices by +22.9% and +29.4% respectively and the Bloomberg Galaxy Crypto Index by +26.7% (https://medium.com/@visionhill_/vision-hill-crypto-hedge-fund-returns-fourth-quarter-2018-a87d8c38d44).”

While hedge funds did outperform bitcoin, this doesn’t necessarily imply growth. That is, the returns of both assets are approximate -18% and -43.5% respectively.

To ensure adequate sample size, the advisors were able to collect “48 unique data points”, with a significant number of hedge funds that either preferred to keep their performance reports covered or hadn’t completed data collection.

Interestingly, the report also provides a summary of central tendencies from the second until the fourth quarter of 2018. One should bear in mind, that there were 35, 43 and 48 data points respectively. This being said, the aggregate average of hedge funds sits at -19% in Q4, compared to Q2’s -4.9%.

Similarly, the aggregative median of hedge funds sits at -18.8% in Q4, a further drop from Q2’s -4.3%. Comparable trends have also been witnessed across sub-strategies, market, and alphas.

Overall, said results were expected considering the fact that the fourth quarter of 2018 was hard hit for the crypto market. The news outlet, The Block Crypto has also interpreted Vision Hill’s findings and shared a Partner at Vision Hill, Dan Zuller’s perspective. In particular, Zuller noted that

“the number of funds that didn’t report were less than a handful this quarter. We attribute this to the year-end audit cycle as well as the fact that it was generally a tough quarter.”

For more on Vision Hill’s findings, click here: https://medium.com/@visionhill_/vision-hill-crypto-hedge-fund-returns-fourth-quarter-2018-a87d8c38d44)

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