Vision Hill Crypto Hedge Fund Returns: First Quarter 2020
We are pleased to announce the Vision Hill Active Crypto Indices have been updated to reflect first quarter 2020 data.
The Vision Hill Active Crypto Indices are non-investable reference indices designed to be representative of the overall composition of the crypto and blockchain-focused hedge fund universe. The Vision Hill Active Crypto Index (VH-ACI) is a reference index designed to be representative of the overall performance of all actively managed crypto and blockchain-focused hedge funds within our scope. We currently segment all crypto hedge funds into one of three categories, namely: 1) Fundamental, 2) Quantitative, and 3) Opportunistic.
The VH-ACI (Composite) aggregates all these strategies into one index at the headline level. Sub-indices for each strategy are also available for anybody wishing to reference specific types of managers and strategies, notably the VH-ACIF, VH-ACIQ, and VH-ACIO for Fundamental, Quantitative, and Opportunistic hedge fund managers, respectively. Defining characteristics for each of these strategies, as well as more detailed information on the indices can be found in our methodology publicly available on our website.
In the first quarter of 2020, on a net basis, the VH-ACI (Composite) was up +8.8% on average, the VH-ACIF (Fundamental managers) was up +2.4% on average, the VH-ACIQ (Quantitative managers) was up +17.3% on average, and the VH-ACIO (Opportunistic managers) was up +16.9% on average.
Putting these active management returns in context relative to some passive, public counterparts, bitcoin (BTC) was down -10.5% on the quarter, the Bitwise 10 Large Cap Crypto Index (BITX) was down -7.7% on the quarter, and the Bloomberg Galaxy Crypto Index (BGCI) was down -1.5% on the quarter. When considering active management performance from a longer lens (such as the beginning of 2018, representing over 2-years of observed performance), active managers outperformed passively holding bitcoin.
In consideration of the foregoing, is important to emphasize that these performance comparisons are metrics as of a particular measurement point in time, representing only a limited snapshot and should not be considered as long-term indications of performance. We believe the crypto hedge fund landscape was not fully developed enough to warrant meaningful performance and statistical analysis until the beginning of 2018, and even that measurement period is limited to just over two years as of the time of writing. The digital asset industry remains highly volatile and in the early stages of development, and past performance is no guarantee of future results. Additionally, strategy specialization, alpha generation, risk management, valuation, and operational best practices continue to develop in the crypto hedge fund landscape.
For additional information, such as strategy quartiles, historical monthly data points, aggregated risk metrics, and methodology, please visit our website or read our Q1 2020 Crypto Hedge Fund Report.
Disclaimers:
The Vision Hill Active Crypto Indices are non-investable reference indices designed to be representative of the overall composition of the crypto hedge fund universe. Performance of an index is not illustrative of any particular investment. It is not possible to invest directly in an index. Performance information for the indices is provided for informational purposes only. It is our intent for the Vision Hill Active Crypto Indices to become the market standard benchmark for all actively managed crypto and blockchain-focused hedge funds, institutional allocators, and sophisticated investors for the purpose of providing proper composite and sub-strategy relative benchmarking. The reference indices presented here are for illustrative and discussion purposes only, are exclusively the property of Vision Hill Group Inc., and are not for distribution.
Vision Hill Group is a premier investment consulting and digital asset management firm empowering investors and clients to make better, more informed investment decisions in digital assets. Vision Hill Group brings together a team with extensive experience in traditional financial markets, a deep passion and understanding of crypto and digital asset markets, and a history of risk and portfolio management.
The content provided herein should not be considered investment advice, and is not a recommendation of, or an offer to sell or solicitation of an offer to buy, any particular security, strategy, or investment product.
