Alpha Sigma Capital, a blockchain and crypto hedge fund managed by former Nasdaq strategist Enzo Villani, is raising $100 million.
Announced on Wednesday, the hedge fund was launched in January by Villani along with Michael Onghai. Both of them spent years in the traditional financial industry and have extensive knowledge of private equity, public equities, and portfolio management.
The hedge fund approaches the digital asset market with a multi-strategy manner and invests in tokens, cryptocurrencies, equities, and derivatives, along with private investments. It primarily focuses on firms that launched digital assets that have met or surpassed their roadmaps and expectations and require next stage capital to fuel growth.
Growing institutional demand for crypto
It allows institutional investors to invest in digital assets via a professionally structured fund that deems liquidity as key investment criteria, the announcement detailed.
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Commenting on the approach to the market for funds, Villani, chief executive of the fund, said: “Alpha Sigma Capital was created to invest in promising projects as we enter the adoption phase of blockchains and digital assets. As a hedge fund, we have the flexibility to invest in tokens, debt, equities, and derivatives which allows our investors downside protection while focused on above-market returns.”
The press release also detailed that, to date, the fund has invested in blockchain protocol Factom, decentralized artificial intelligence (AI) platform SingularityNet, and Korean blockchain startup Carry Protocol, along with a few others.
Though the demand for crypto hedge funds is rising again, Bloomberg last year reported that 70 such funds shut in 2019 alone.
“We don’t have a crystal ball but what we do have is the proven progress our portfolio are making. They are proving their revenue models, executing on their token economics and delivering real-world value,” Onghai added,