Cambrial Capital which focuses on a Crypto fund of funds is set to shut down its operations in the near future according to insiders familiar with the issue.
Cambrial Capital is set to become the latest victim of the Coronavirus epidemic and its vast impact on the global economy. The fund, which manages about $6 to $10 million is set to wind down amid the crisis. The firm suffered its largest loss on March 12, which the crypto community has dubbed ‘Black Thursday’ where Bitcoin shed over 40 percent of its value.
Commenting on this issue; “We don’t talk about our products publicly given we’re regulated,” David Fauchier, Cambrial’s co-founder and chief investment officer, told CoinDesk. “We’d have to run any response through our [regulatory] umbrella and we’re a little busy right now.”
Cambrial Capital was started in 2018 in the United Kingdom and received an operating license from the U.K.’s Financial Conduct Authority (FCA). The firm has an experienced team that consists of Alex Obadia, Ha Duong and Edward Nelson. Close sources told CoinDesk that Cambrial Capital has one of the most respected teams in the industry.
Fund managers that are experts in different strategies and take pooled investments and diversify them into other categories, or a “fund of funds.” Startups such as Cambrial Capital operate with various tactics like arbitrage, mean reversion, OTC trading, market-making, and others.
Due to their diversification, companies like Cambrial are also known as market neutral. Investment in the crypto market is considered a high-risk aspect and other firms are also suffering like Cambrial as others are facing tough times due to market rout in the last one month.
Adaptive Capital, a crypto hedge fund, stated that it was shutting down and will return the remaining capital to its investors due to market turmoil in March.
Despite the turbulent market, some players are positive that the market will stabilize soon after the Coronavirus crisis is over.