Key Takeaways
- • Man Group Plc, described as the world's largest publicly traded hedge fund, says investor appetite for crypto hedge fund strategies has not yet materialized.
- • Man Group and LGT Capital Partners cite inefficiencies and operational risks as currently outweighing potential returns in crypto strategies.
- • LGT partner Roger Hilty said at the Bloomberg Hedge Fund Forum that crypto remains a small residual position in LGT's portfolio and the firm is not ready to move aggressively.
Summary
Man Group Plc, the world's largest publicly traded hedge fund, and LGT Capital Partners have both said they have not yet seen meaningful investor demand for crypto hedge fund strategies. According to Bloomberg, the two firms view operational risks and market inefficiencies as currently outweighing the return potential of these strategies.
Speaking at the Bloomberg Hedge Fund Forum on Wednesday, Roger Hilty, a partner at LGT, described crypto as a "fascinating space" but emphasized a conservative stance on capital preservation. "Having said that, the return of your capital is more important than the return on your capital," Hilty said. He added that crypto "remains a small residual of our portfolio but we are not ready to actually move in quite aggressively."
The comments suggest that large institutional allocators remain cautious on digital assets within alternative portfolios, even as interest in the asset class has grown more broadly. For allocators evaluating crypto exposure, the remarks underscore that leading multi-strategy and hedge fund managers are still limiting positions to small allocations pending clearer risk frameworks.
Speaking at the Bloomberg Hedge Fund Forum on Wednesday, Roger Hilty, a partner at LGT, described crypto as a "fascinating space" but emphasized a conservative stance on capital preservation. "Having said that, the return of your capital is more important than the return on your capital," Hilty said. He added that crypto "remains a small residual of our portfolio but we are not ready to actually move in quite aggressively."
The comments suggest that large institutional allocators remain cautious on digital assets within alternative portfolios, even as interest in the asset class has grown more broadly. For allocators evaluating crypto exposure, the remarks underscore that leading multi-strategy and hedge fund managers are still limiting positions to small allocations pending clearer risk frameworks.
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