Key Takeaways
- • Syz Group and CMCC Global are launching SyzCrest Digital Uncorrelated, a fund of crypto hedge funds, available to investors from 1 July 2023 according to the firm's statement.
- • The fund targets scaling to $300 million, with capacity options provided to early investors.
- • Syz Capital, Syz Group's alternatives business, will act as investment manager, with CMCC Global serving as sub-advisor through its hedge fund selection arm Crest.
- • The strategy targets returns of 5% to 10% in bear markets and 35% or more in bull markets, primarily via market-neutral strategies with trend-following overlays.
- • The launch extends Syz Group's crypto push, following its December 2022 offering of crypto custody and trading services to Swiss and international clients.
Summary
The Syz Group, a family-owned Swiss financial group, has partnered with CMCC Global, a Hong Kong-based institutional crypto asset manager, 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 and aims to scale to $300 million, with capacity options offered to early investors.
The structure pairs Syz Capital, the alternatives arm of Syz Group, as investment manager with CMCC Global as sub-advisor. The proposition is built on Crest, the hedge fund selection arm of CMCC Global. 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 risks in the industry, and diversify across managers and strategies.
The fund is designed as an all-weather strategy intended to generate positive returns in both bull and bear markets. According to the article, it targets returns of 5% to 10% in a bear market and 35% or more in a bull market, primarily through market-neutral strategies. Directional exposure will be added through trend-following (CTA/momentum) strategies, guided by SyzCrest's proprietary tools for cycle stage and strength assessment. The portfolio will be rebalanced monthly using quantitative simulations optimised for the Calmar ratio.
Willy Woo, managing partner of CMCC Global and Crest, cited the breadth of the market, noting 23,000 crypto assets currently exist with thousands of liquid markets added per year. He said the top 30 digital assets enjoy liquidity comparable to that of the S&P 500, and that volatility and pricing inefficiencies can be exploited by algorithmic strategies.
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, and the company says these announcements reflect its commitment to bridging traditional and decentralised finance.
The structure pairs Syz Capital, the alternatives arm of Syz Group, as investment manager with CMCC Global as sub-advisor. The proposition is built on Crest, the hedge fund selection arm of CMCC Global. 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 risks in the industry, and diversify across managers and strategies.
The fund is designed as an all-weather strategy intended to generate positive returns in both bull and bear markets. According to the article, it targets returns of 5% to 10% in a bear market and 35% or more in a bull market, primarily through market-neutral strategies. Directional exposure will be added through trend-following (CTA/momentum) strategies, guided by SyzCrest's proprietary tools for cycle stage and strength assessment. The portfolio will be rebalanced monthly using quantitative simulations optimised for the Calmar ratio.
Willy Woo, managing partner of CMCC Global and Crest, cited the breadth of the market, noting 23,000 crypto assets currently exist with thousands of liquid markets added per year. He said the top 30 digital assets enjoy liquidity comparable to that of the S&P 500, and that volatility and pricing inefficiencies can be exploited by algorithmic strategies.
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, and the company says these announcements reflect its commitment to bridging traditional and decentralised finance.
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