Key Takeaways
- • Syz Group, through its alternatives arm Syz Capital, is launching SyzCrest Digital Uncorrelated, a fund of crypto hedge funds, with CMCC Global as sub-advisor, available to investors from 1 July 2023.
- • The fund targets scaling to $300 million, with capacity options offered to early investors.
- • The strategy aims for returns of 5% to 10% in bear markets and 35% or more in bull markets, primarily through market-neutral strategies with trend-following (CTA/momentum) overlays for directional exposure.
- • Crest, the hedge fund selection arm of Hong Kong crypto manager CMCC Global, provides the manager selection; Willy Woo serves as managing partner of CMCC Global and Crest.
- • The launch extends Syz Group's crypto push, following its December 2022 introduction of crypto custody and trading services for Swiss and international clients.
Summary
The Syz Group, a family-owned and managed Swiss financial group, has partnered with CMCC Global, an institutional crypto asset manager based in Hong Kong, to launch SyzCrest Digital Uncorrelated, a fund of crypto hedge funds. According to the firm's statement, the fund will be available to investors from 1 July 2023 and aims to scale to $300 million, with capacity options provided to early investors.
The partnership pairs Syz Capital, Syz Group's alternatives business, which will act as investment manager, with CMCC Global, which will serve as sub-advisor. The fund draws on Crest, the hedge fund selection arm of CMCC Global, and was set up by professionals from both traditional hedge fund and crypto and digital asset backgrounds.
The strategy is designed to generate positive returns across bull and bear markets. Per the firm, it targets returns of 5% to 10% in a bear market and 35% or more in a bull market, primarily through market-neutral strategies, with directional exposure added via trend-following (CTA/momentum) strategies. The directional allocation will use SyzCrest's proprietary tools for cycle stage and strength assessment, and the portfolio will be rebalanced monthly using quantitative simulations optimised for the Calmar ratio.
Richard Byworth, managing partner at Syz Capital, said a fund of hedge funds providing oversight and governance is the best way to invest in the opportunity presented by crypto, protect against unseen industry risks, and diversify across managers and strategies. Willy Woo, managing partner of CMCC Global and Crest, said digital assets are a new frontier, with 23,000 crypto assets currently in existence and thousands of liquid markets added per year, and that the top 30 digital assets enjoy liquidity comparable to the S&P 500.
The launch is part of Syz Group's broader innovation strategy. In December 2022, the group began offering cryptocurrency custody and trading services to its Swiss and international clients, which the firm describes as part of its commitment to bridging traditional and decentralised finance.
The partnership pairs Syz Capital, Syz Group's alternatives business, which will act as investment manager, with CMCC Global, which will serve as sub-advisor. The fund draws on Crest, the hedge fund selection arm of CMCC Global, and was set up by professionals from both traditional hedge fund and crypto and digital asset backgrounds.
The strategy is designed to generate positive returns across bull and bear markets. Per the firm, it targets returns of 5% to 10% in a bear market and 35% or more in a bull market, primarily through market-neutral strategies, with directional exposure added via trend-following (CTA/momentum) strategies. The directional allocation will use SyzCrest's proprietary tools for cycle stage and strength assessment, and the portfolio will be rebalanced monthly using quantitative simulations optimised for the Calmar ratio.
Richard Byworth, managing partner at Syz Capital, said a fund of hedge funds providing oversight and governance is the best way to invest in the opportunity presented by crypto, protect against unseen industry risks, and diversify across managers and strategies. Willy Woo, managing partner of CMCC Global and Crest, said digital assets are a new frontier, with 23,000 crypto assets currently in existence and thousands of liquid markets added per year, and that the top 30 digital assets enjoy liquidity comparable to the S&P 500.
The launch is part of Syz Group's broader innovation strategy. In December 2022, the group began offering cryptocurrency custody and trading services to its Swiss and international clients, which the firm describes as part of its commitment to bridging traditional and decentralised finance.
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