At a time when the repercussions of CovidD-19 are taking a heavy toll on both stock markets and the hedge fund industry, TYR Capital has started 2020 with a performance of +11 per cent as of the 30 April, beating benchmark comparators by significant margin during extreme volatility. Annualised Sharpe ratio was above 4.
TYR Capital Arbitrage SP was launched in January 2019 by Nick Norris, Ed Hindi and Nick Metzidakis. They met at Oak Capital, the London-based trading firm focused on soft commodity and energy markets, where Norris was COO, Hindi was Partner and CIO, and Metzidakis was Head of Quantitative Trading. Prior to that, Norris and Hindi traded together at Geneva Trading LLC and Hartree Partners LP.
The team successfully delivered the same strategy in the commodity sector for 15 years, securing the top liquidity provider position in energy, base metals and iron ore. From 2008, their trading strategy consistently outperformed the market and industry peers.
The TYR Capital Arbitrage SP fund delivers positive, low volatility performance to high net worth individuals, family offices and institutional investors. Its strategy focuses on liquidity provision and arbitrage across the top ten most liquid cryptocurrencies, by market capitalization, in both electronic and OTC venues. Complemented by a highly disciplined risk-taking approach, the fund aims to generate significant and steady Alpha.
TYR Capital’s proprietary methodology is a short to medium term horizon, favors volatile market conditions and is agnostic as to market direction, i.e. the strategy generates returns in both falling and rising prices.
Nick Norris, CEO, says: “We took our knowledge and our expertise from many years in the commodities markets and put them to use with digital assets as we saw the market evolving and institutional interest growing. Arbitrage strategies work extremely well when it comes to volatile markets. With the volatility seen during recent times, the volumes and opportunities in the market for those who have the skill and know-how are substantial.
“Our investors, many of whom followed us from our time in the commodities markets, have really benefitted from our consistent performance and the diversification of their portfolios through digital assets.
“We are witnessing significant structural change in the market, which we believe is likely to persist and shape the future of trading and regulation. We believe these next years ahead will be instrumental for the entrance of institutional investors into the digital asset space.”
Ed Hindi, CIO, says: “2020 has begun with continued strong performance for the fund, against the backdrop of heightened volatility across asset classes. We expect this volatility to persist as the world adapts to a ‘new normal’ and the investment landscape is reset as a result. We are ready for it and are confident we can continue to deliver strong returns for clients who are seeking to take advantage of digital assets.”