Key Takeaways
- • Parataxis Capital Management's $100m Absolute Return crypto hedge fund returned 341% net of fees in 2023, according to a Bloomberg report.
- • The fund's gains came from overweight positions in bitcoin, which benefited from the 2023 US regional banking turmoil, and from cheap solana tokens bought after FTX's late-2022 bankruptcy filing.
- • Solana surged more than 900% in 2023, per the report, making it the fund's standout position.
- • Parataxis was among only about 4% of funds that outperformed bitcoin's return last year, according to the same report.
- • CEO Edward Chin attributed the results to being liquid and focused on oversold assets, and the firm remains bullish on bitcoin, which it believes could reach $200,000 by 2025.
Summary
A cryptocurrency hedge fund run by Parataxis Capital Management recorded a 341% return in 2023, net of fees, according to a report by Bloomberg. The performance was attributed to the firm's $100m Absolute Return fund, which benefited from bets on both bitcoin and solana.
Bloomberg cites CEO Edward Chin as confirming the fund's performance. The fund was overweight bitcoin when problems in the US regional banking market in 2023 helped bolster the cryptocurrency. It also purchased solana tokens at low prices when FTX filed for bankruptcy in late 2022. Solana subsequently surged by over 900% during 2023.
Chin told Bloomberg, "Being liquid and focused on oversold assets was right." The firm remains bullish on bitcoin and believes the cryptocurrency could reach $200,000 by 2025. Parataxis was among only 4% of funds that beat bitcoin's return last year, the report indicates.
Bloomberg cites CEO Edward Chin as confirming the fund's performance. The fund was overweight bitcoin when problems in the US regional banking market in 2023 helped bolster the cryptocurrency. It also purchased solana tokens at low prices when FTX filed for bankruptcy in late 2022. Solana subsequently surged by over 900% during 2023.
Chin told Bloomberg, "Being liquid and focused on oversold assets was right." The firm remains bullish on bitcoin and believes the cryptocurrency could reach $200,000 by 2025. Parataxis was among only 4% of funds that beat bitcoin's return last year, the report indicates.
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