The rising demand for crypto assets has led to a growing demand for a better understanding of the value of digital currencies as investments in digital asset funds. Although the high market capitalization of digital currencies may come from predominantly individual traders, digital asset fund investors also play an active role in these new financial instruments.
In their study on the performance of funds in the fast-growing world of cryptocurrency, authors Daniele Bianchi and Myola Babiak show that despite a bumpy ride for these fragmented, unregulated, and decentralized currencies, some fund managers do generate noteworthy performances.
Digital Capital Management (DCM), the Crypto Asset Fund (CAF) hedge fund manager based in La Jolla, California, has managed some excellent crypto fund performances in 2021, receiving significant industry awards.
DCM’s Successful Fund Strategies
DCM provides exposure to a portfolio of digital assets to individuals and institutions. Managed by experienced administrators, traders, and analysts familiar with the crypto space, the company uses a single fund investment to eliminate the complexities of maintaining the otherwise complex systems surrounding digital assets.
Since a passive hold strategy can lead to an excessive market risk caused by the volatility of the digital assets markets, DCM uses a quasi-fixed-income approach, actively managing and investing digital asset holdings in a fund strategy that trades across multiple digital assets in an effort to minimize risk.
DCM’s Crypto Asset Fund (CAF) launched in July 2017. The fund’s objective was to preserve capital and generate capital appreciation for global individuals with substantial assets and institutional investors.
Besides their Class A and Class F strategy, one actively trading in digital assets and the other focused on yields from farming, mining, and staking, their Class X strategy produced some of the top performances in the industry, winning DCM several noteworthy accolades. Like all the classes of DCM’s Crypto Asset Fund, Class X is denominated in USD, but it is not currently open to investors. However, last year, Class X attracted widespread interest from investors globally. This year, Class F, the following-on to Class X, has attracted similar interest.
CAF Class X Accolades
Tim Enneking spoke about the awards, “In its fifth year of existence, Digital Capital Management managed to reap several important cryptocurrency digital assets awards in the hedge fund ranks.”
Most notably, Hedgeweek gave them the following awards: Best Absolute 12-Month Performance – New Manager (any AUM) for 2021, Best Digital Asset Manager – Overall for 2021 and the Best Absolute 12-Month Performance Fund (˂$25M in AUM) for 2021. Additionally, Preqin gave Digital Capital Management the following awards for their performance: #1 Performing Hedge Fund Overall for 2021 and #1 Performing Crypto Fund Overall for 2021.
Furthermore, Crypto Fund Research awarded DCM two awards as the top performing crypto fund, one for net return on all strategies and another on net return for Quant/Arb strategies. These companies use performance databases to determine rankings and winners across various categories.
Paving the Road to Digital Fund Success
Tim Enneking founded Digital Capital Management, LLC, but he is not new to cryptocurrency investing. Mr. Enneking also founded the Crypto Currency Fund (CCF), one of the first private funds to focus on cryptocurrencies. Before CCF, Tim Enneking created and managed the Tera Capital Fund focused on Eastern Europe and became the first manager of the world’s first bitcoin fund in 2013.
The experienced investment manager also holds the position of Chief Investment Officer at Mana Companies Asset Management, the multi-generational family office based in San Diego.
Highly educated, Mr. Enneking has five degrees in international business and law. In addition, he is fluent in French, Russian, and German. Finally, his extensive experience in mergers and acquisitions includes 70 transactions with a collective value of over US$12 billion.
As a member of DCM’s Trading Team and Valuation Committee, Tim Enneking recently said, “These prestigious industry rankings attest to the value we strive to deliver to our individual and institutional investors.”
Cryptocurrencies have an essential role to play as financial instruments. In March this year, DCM represented the United States, one of just ten companies to do so, at the U.S. Department of Commerce Virtual Certified Trade Mission for Blockchain, Digital Asset and Crypto Fund Managers. Tim Enneking also spoke at the European Blockchain Convention in Barcelona and at the Hedgeweek Digital Asset Summit in London, where he received awards on behalf of DCM in June this year. These achievements in the year of DCM’s fifth anniversary prove their commitment to remaining at the top of the cryptocurrency digital assets ranks.