Key Takeaways
- • Tephra Digital, a crypto-focused hedge fund backed by Jefferies' Leucadia Asset Management, returned 11% in May 2025, outpacing many peers as digital asset markets rallied sharply, according to Financial News.
- • The fund's year-to-date return stands at approximately 7%, per unnamed sources cited in the report, and it manages roughly $140m in assets.
- • Ether (ETH) surged more than 35% in May, the top performer among major digital assets, while Bitcoin hit an all-time high near $112,000 and finished the month up 10%.
- • Peer crypto hedge funds also posted gains: Pythagoras Investments' Alpha Long Biased strategy rose 15.8%, Edge Capital gained 1.2% ($450m AUM), and Fasanara Digital returned 1% ($320m AUM).
Summary
Tephra Digital, a crypto-focused hedge fund backed by Jefferies' Leucadia Asset Management, posted an 11% gain in May, outperforming many of its peers as digital asset markets rallied sharply, according to a report by Financial News. The report, citing unnamed sources familiar with the matter, said the fund's year-to-date return now stands at approximately 7%.
Launched in June 2022, Tephra manages approximately $140 million in assets. The fund drew attention in 2024 with a 100% annual return, which has established it as one of the stronger performers in the crypto hedge fund space.
The May gains were driven by winning directional positions across major cryptoassets. Ether was the standout, rising more than 35% during the month and outperforming all other top-tier digital assets. Bitcoin also contributed to the broader rally, reaching an all-time high of nearly $112,000 and ending May up 10%. The report notes that the broader crypto market gained roughly $300 billion in value over the period.
Other crypto hedge funds also posted positive returns. Pythagoras Investments, a US-based digital asset manager with $190 million in AUM, saw its Alpha Long Biased strategy rise 15.8% in May, while its Absolute Return strategy added 3.8%, according to people with knowledge of the performance figures. Edge Capital, which oversees $450 million, gained 1.2% last month, lifting its year-to-date performance to 5.2%. London-based Fasanara Digital, managing $320 million, delivered a 1% return in May and extended its year-to-date gain to 4.5%.
Launched in June 2022, Tephra manages approximately $140 million in assets. The fund drew attention in 2024 with a 100% annual return, which has established it as one of the stronger performers in the crypto hedge fund space.
The May gains were driven by winning directional positions across major cryptoassets. Ether was the standout, rising more than 35% during the month and outperforming all other top-tier digital assets. Bitcoin also contributed to the broader rally, reaching an all-time high of nearly $112,000 and ending May up 10%. The report notes that the broader crypto market gained roughly $300 billion in value over the period.
Other crypto hedge funds also posted positive returns. Pythagoras Investments, a US-based digital asset manager with $190 million in AUM, saw its Alpha Long Biased strategy rise 15.8% in May, while its Absolute Return strategy added 3.8%, according to people with knowledge of the performance figures. Edge Capital, which oversees $450 million, gained 1.2% last month, lifting its year-to-date performance to 5.2%. London-based Fasanara Digital, managing $320 million, delivered a 1% return in May and extended its year-to-date gain to 4.5%.
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