Key Takeaways
- • Hunting Hill Global Capital, a New York-based hedge fund with $364 million in assets under management as of a March filing, launched its digital asset affiliate, Hunting Hill Digital (HHD), backed by an undisclosed investment from BaseLayer Ventures.
- • HHD's first product, the Crypto 25 Fund, is slated to launch later in 2023 with an initial $20 million to $25 million in AUM, according to a source familiar with the matter.
- • The Crypto 25 Fund will offer institutional investors an actively managed strategy focused on the top 25 cryptocurrencies by market cap, liquidity and performance, with TIFF as anchor investor.
- • Hunting Hill is launching the unit during a prolonged crypto bear market, with co-founder Adam Guren framing the move as a contrarian bet on distressed dislocations.
- • The affiliate's launch followed early controversy over claims by former Genesis executives to be co-founders, which Hunting Hill said did not result in employment.
Summary
Hunting Hill Global Capital, a New York-based traditional finance hedge fund with $364 million in assets under management as of a March filing, announced on Wednesday, May 24, 2023 that it is starting its digital asset affiliate, Hunting Hill Digital (HHD). The affiliate is backed by an undisclosed investment from early-stage venture capital firm BaseLayer Ventures, according to CoinDesk.
HHD's first product will be the Crypto 25 Fund, which is expected to launch later this year with an initial $20 million to $25 million in assets under management, according to a source familiar with the matter. HHD is partnering with anchor investor TIFF on the fund, which will provide institutional investors with exposure to an actively managed strategy focused on the top 25 cryptocurrencies by market capitalization, liquidity and performance. HHD will eventually manage all of Hunting Hill's digital asset products once that transition is complete, including the Hunting Hill Crypto Opportunities Fund. The affiliate also plans to explore tokenization and non-fungible token (NFT) asset management. It will be managed by Adam Guren, chief investment officer of Hunting Hill and co-founder of HHD, and co-founder Sonny Dozier.
The launch comes during a turbulent and ongoing crypto bear market that has slowed investment across the sector. Hunting Hill cites institutional investor interest and the potential of investments made during a downturn. Guren told CoinDesk: "We are contrarian traders by nature and we look for these types of distressed dislocations and believe that there is opportunity when those occur." He added: "These are the times that we want to be putting seeds in the ground to watch them in the future."
Hunting Hill, established in 2012 as an asset manager targeting institutional investors, moved into digital assets in 2016. By 2021, the firm had about $3.5 billion of its balance sheet dedicated to trading digital assets and their derivatives. Guren said the firm began reducing that exposure over counterparty risk concerns, which meant it avoided exposure to the bankruptcies and insolvencies that hit the industry.
The existence of HHD was first reported by Blockworks in December 2022. The affiliate drew early controversy when CNBC reported that three former executives of Genesis, the crypto lender and CoinDesk sister company that filed for bankruptcy earlier in 2023, claimed to be HHD co-founders and touted a Bessemer Ventures investment, which the investor denied. Hunting Hill later told The Daily Beast that it had discussions with two of the ex-Genesis employees but they never started employment. The third, Martin Garcia, was HHD's chief investment officer until his departure on May 1, according to a source told CoinDesk.
HHD's first product will be the Crypto 25 Fund, which is expected to launch later this year with an initial $20 million to $25 million in assets under management, according to a source familiar with the matter. HHD is partnering with anchor investor TIFF on the fund, which will provide institutional investors with exposure to an actively managed strategy focused on the top 25 cryptocurrencies by market capitalization, liquidity and performance. HHD will eventually manage all of Hunting Hill's digital asset products once that transition is complete, including the Hunting Hill Crypto Opportunities Fund. The affiliate also plans to explore tokenization and non-fungible token (NFT) asset management. It will be managed by Adam Guren, chief investment officer of Hunting Hill and co-founder of HHD, and co-founder Sonny Dozier.
The launch comes during a turbulent and ongoing crypto bear market that has slowed investment across the sector. Hunting Hill cites institutional investor interest and the potential of investments made during a downturn. Guren told CoinDesk: "We are contrarian traders by nature and we look for these types of distressed dislocations and believe that there is opportunity when those occur." He added: "These are the times that we want to be putting seeds in the ground to watch them in the future."
Hunting Hill, established in 2012 as an asset manager targeting institutional investors, moved into digital assets in 2016. By 2021, the firm had about $3.5 billion of its balance sheet dedicated to trading digital assets and their derivatives. Guren said the firm began reducing that exposure over counterparty risk concerns, which meant it avoided exposure to the bankruptcies and insolvencies that hit the industry.
The existence of HHD was first reported by Blockworks in December 2022. The affiliate drew early controversy when CNBC reported that three former executives of Genesis, the crypto lender and CoinDesk sister company that filed for bankruptcy earlier in 2023, claimed to be HHD co-founders and touted a Bessemer Ventures investment, which the investor denied. Hunting Hill later told The Daily Beast that it had discussions with two of the ex-Genesis employees but they never started employment. The third, Martin Garcia, was HHD's chief investment officer until his departure on May 1, according to a source told CoinDesk.
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