Meet the cryptocurrency hedge fund which operates out of a dorm room. Trace Capital might be characterized as a cryptocurrency hedge fund but it has plenty of things which are different about it. It is not your average cryptocurrency hedge fund.
The total corpus is around $300000 which has been gathered from around 15 investors. It uses an algorithm in order to predict the prices of various cryptocurrencies. Up until now, the algorithm is successful only to certain extent.
Trace capital has already received buyout offers from various other hedge funds. The unique thing about this hedge fund is that it is based out of a dorm room. The partners in the hedge fund Leo Tulchin and Brandon are not interested in selling the hedge fund at this very stage.
According to the founder, the potential of this hedge fund is pretty huge. Moreover, they are still working on developing the algorithm in order to make it much more accurate.
One of the clients who is a hospitality and leisure management major, Konig Chen stated that he was able to make almost 3x returns in the short period of time in which the hedge fund has been operational.
With that being said, the client is not entirely positive with the cryptocurrencies are an asset class for the future. Currently, owing to the astronomical returns, he plans to remain invested in the cryptocurrency hedge fund. Also, he has complete trust in the partners running the cryptocurrency hedge fund from the dorm room.
According to client Klein, the trend in the cryptocurrencies is still upwards. This would ensure that the capital increases further. Moreover, with the algorithmic trading, the chances of a loss occurring is on the lower side. This would again protect the clients as well.
With that being said, many other investors are also looking for such investment solutions. With the help of algorithmic trading mechanisms, the accuracy can be improved more and more. When the accuracy is improved, the returns would also improve. This is the reason why this hedge fund, as well as others like it, are being closely watched as well. It remains to be seen whether in the future as well, these hedge funds are able to generate such astronomical returns or not. For now, however, it is proving to be a lucky charm for most of the investors who have invested in it at the start.
This would certainly spark the interest of even more investors when it comes to cryptocurrency hedge funds.
Adam Webb is editor in Smartereum, blockchain and currency news, where he produces updates on Blockchain, Ethereum and other alternative cryptocurrencies.
