"Aaro Capital launches market neutral cryptoassets and DLT FoF strategy"

Aaro Capital

Aaro Capital launches market neutral cryptoassets and DLT FoF strategy

London, 13 December 2022 – Aaro Capital, the cryptoassets and DLT investment specialist, today announces the launch of a second flagship investment strategy – The Aaro Market Neutral Crypto Multifund. The new fund is an institutional quality Fund of Funds offering market neutral access to cryptoassets via a diversified and carefully risk-managed approach. It seeks to capitalise on short term market inefficiencies in a risk-controlled manner while protecting against the high volatility of the asset class. The fund is available to institutional and other professional investors through either a Cayman-based fund or a Luxembourg-domiciled SICAV.

The launch of a second fund of funds strategy builds on the track record of the Aaro DLT Multifund, which has been managed by Aaro’s co-founders, CEO Peter Habermacher and CIO Ankush Jain. Launched in May 2020, it has delivered a total return of 205.1% since inception as of September 30, 2022, outperforming the wider crypto market (MVIS 100) by 35.1% and Bitcoin by 80.2%. The fund’s Sharpe Ratio of 1.02 is also superior to that of the MVIS 100 index (0.69) and Bitcoin (0.52).1

This launch is especially timely against a background of what we believe are weak market conditions and high levels of volatility in the crypto market in recent months. The Aaro Market Neutral Crypto Multifund targets double-digit market-neutral annualised returns with single-digit annualised volatility and drawdowns and offers uncorrelated absolute returns without excessive exposure to market direction.

The Fund of Funds structure provides professional investors access and broad exposure to the expertise of active managers specialising in different areas of this diverse set of opportunities. It also benefits from portfolio diversification across asset class, style, strategy and fund structure, as well as reduced investment and operations risk via diversification across multiple managers, exchanges, custodians and other service providers.

Active portfolio management of the Aaro Market Neutral Multifund also allows for navigation of the fast-changing market conditions in this space. The importance of active management is underpinned by the fact that an average active crypto fund has outperformed the cryptoassets market significantly over the last seven years, with a third less volatility and slightly over half of the maximum drawdown.

Peter Habermacher, CEO and Co-founder at Aaro Capital, commented: “Building on the success of the diversified Aaro DLT Multifund, we’re excited to see the launch of The Aaro Market Neutral Multifund to provide diversified market neutral access to cryptoassets for professional investors in a tightly risk managed and regulated structure. The Multifunds are some of the first professionally managed and genuinely institutional quality cryptoassets and DLT fund of funds in the market. Aaro Capital’s overarching focus remains on providing a diversified and risk managed approach and achieving superior risk adjusted returns which can substantially enhance traditional investor portfolios as we look forward to delivering on our aim of opening up this exciting new asset class for institutional and other professional investors as the market matures and becomes increasingly active.”

Ankush Jain, CIO and Co-founder at Aaro Capital, added: “We aim to deliver sustainable, long-term exposure to the cryptoassets and DLT growth story while not getting distracted by short-term trends. We believe that understanding the economics is critical when approaching this space. Our approach combines thorough economic and empirical analysis with established investment industry practices, to select best-in-class active managers. Portfolio construction decisions are based on rigorous top-down and bottom-up analysis while prioritising rigorous due diligence and effective downside risk protection.”

1 This information contains a prominent warning that the figures refer to past performance and that past performance is not a reliable indicator of future performance.

About Aaro Capital

Aaro Capital was established in 2018 as one of the first investment specialists focused on cryptoassets and Distributed Ledger Technology (DLT). Aaro opens up this exciting and rapidly evolving growth story for professional investors.

Aaro Capital’s London-based team represents what we believe to be a unique combination of younger crypto talent with heavyweight veteran expertise in traditional alternative investments.  Our team includes senior industry practitioners, such as Aaro’s Head of Investment Research Peter Rigg (former Global Head of HSBC Alternative Investment Group), Head of Operational Due Diligence Olga Romanova (former Head of Operational Due Diligence at International Asset Management) and Chairman Stuart MacDonald (Managing Partner at Bride Valley Partners). They are supported by the Advisory Board including Eric Bissonnier (former CIO at LumX), Tushar Patel (former CIO at HFIM) and Mattia Rattaggi (former Head of Regulatory Affairs and Governance Reporting at UBS).


Press Inquiries

Danila Andreev
Email: danila.andreev@peregrinecommunications.com
Telephone: +44 (0) 7388 20 4845


Aaro Capital is the trading name of Aaro Capital Limited (“Aaro”), a private limited company, registered in England and Wales with number 11419585, whose registered office is at 5th Floor 14-16 Dowgate Hill, London, United Kingdom, EC4R 2SU. With respect to business conducted within the United Kingdom, Aaro Capital Limited is an Appointed Representative of Quay Partners Investments (UK) LLP which is authorised and regulated by the Financial Conduct Authority. Cryptoassets are at a developmental stage with variation in their regulation across different jurisdictions. Anyone considering investing into these types of assets should be cautious and take appropriate advice in relation to the risks associated with these assets including (without limitation) volatility, total capital loss, and lack of regulation over certain market participants. Before making any investments decisions reference should be made to the prospectus / information document of these types of assets. Past performance is not a reliable indicator of future results. This marketing communication is being provided for informational purposes only and does not constitute investment advice and is not an offer or solicitation for investment.

The Investment Manager of Aaro DLT Multifund is FMG (Malta) Limited: https://www.fmgfunds.com/ (“Investment Manager”) a firm authorised and regulated by the Malta Financial Services Authority with registration number C 44040. Ankush Jain and Peter Habermacher are appointed by AK Jensen Limited – the Sub-Investment Manager – a firm authorised and regulated by the UK Financial Conduct Authority with FRN 439744, to perform the day to day portfolio management of the Aaro DLT Multifund under the authority, and on behalf, of the Sub-Investment Manager. Quay Partners Investments (UK) LLP is the Investment Manager to the Aaro Market Neutral Crypto Multifund Limited. Aaro Capital Limited is the Investment Advisor for the Market Neutral Fund. Ankush Jain and Peter Habermacher are seconded to the Investment Manager to manage the Market Neutral Fund.