Block Asset Management is a specialist blockchain & digital assets focussed alternative investment fund manager. The team created the world’s first dedicated Blockchain & Crypto Fund of Funds in December 2017, with the aim of outperforming the Eurekahedge Cryptocurrency Hedge Fund Index (ECHFI) with reduced volatility. Being the first crypto focussed AIFM to be registered with the CSSF in Luxembourg was also a great but challenging achievement.
As with any new or emerging asset class, where volatility, risk & reward and all increased, the team where all too aware that diversification and thorough due diligence were of paramount importance. Due diligence is an area that the team excels. With the team experienced in the traditional financial sector (having worked for Citibank, Credit Suisse, Lloyds Bank, Julius Baer, UBS & Societe Generale) and with the creation of a carefully selected Crypto advisory board, the team created a dual layered due diligence process, applying both a traditional, and specially created crypto DD process. Hundreds of funds were reviewed before launch but as new funds are entering the market on an almost weekly basis and given that the FoF is actively managed, the DD process is a never ending task and part of the teams daily responsibilities. During this process/research the team identified 6 strategies within this exciting new asset class (Trading & Arbitrage, Index Tracking, Infrastructure, Lending, PE/VC investing and Blockchain related listed companies) and set about finding the ‘best in class’ or most investable funds within these areas. Kevin Ballard, Co-Founder and CCO said that they are “thrilled to be able to bring to market a holistic approach to the world’s newest and fastest growing asset class”.
The teams fund selection and active management has served them well to date as they have consistently achieved their goal of outperforming the ECHFI with reduced volatility. The Block Asset Management team, whist acknowledging that the crypto asset class is of course high risk, explain that they are in essence “acting as a risk filter and reducing unnecessary risks that are rife within the space”. Investors must tread very carefully when investing in the digital Assets space as there are many funds that are not what they appear, concerns over custody & storage of assets and regulation in the sector is constantly evolving, these are issues that managers in more traditional assets do not face.
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