Pantera Capital Crypto Fund – Volatile Month But Still Wildly Profitable

Pantera Capital

OMG, cryptocurrencies such as Bitcoin, Ripple, etc. can go down. Whoa, what a surprise. The big headline is Pantera Capital. It’s digital asset fund and others had 50% losses……….just in March alone. So the crypto “naysayers” are right……..right? Well, not so much. Pantera Capital, which is only a few years old, was up 25,000% lifetime to date and its “newer” funds are doing quite well, thank you. With 100% volatility over the past 27 months you just have to expect some big draw downs, explained Pantera in a letter to investors. Since many of the crypto funds are relatively new, with skeptics around every corner, it might be good to consider (in the words of Dan Morehead, Pantera’s founder):

“If you had a portfolio of IPOs — one was and one was — it doesn’t matter what the rest were. You made a great return.” 

Ah yes, who wouldn’t want (or be blessed) to having a 50% down month and still be up, like, 12,000% over the life of an investment. Don’t chalk those new fangled cryptos off yet.
(Bill Taylor/Managing Editor)

Pantera Capital, a hedge fund that gained attention for returning 25,000 percent over its lifetime through the end of last year, saw the value of its cryptocurrency fund cut nearly in half in March, according to an investor letter Tuesday.

“This was a really rough month for the Digital Asset Fund and the space in general,” Joey Krug, co-chief investment officer of Pantera Capital, wrote in a letter to clients Friday reviewed by CNBC. “We’re in a market with around 100 percent annualized volatility and this month was the worst month in our model’s 27-month history.”

The hedge fund highlighted that since Dec. 1, its Digital Asset Fund was only down 3.1 percent net of fees, compared with bitcoin, which was down 37.4 percent in the same time frame. For March alone, though, Pantera’s Digital Asset Fund was down 45.7 percent.

“This performance is basically in line with our expectation — given the huge move in the market as a whole,” Krug said…”