$ 1 billion + Boothbay has been executing crypto strategies since 2013

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Boothbay Fund Management has been investing in cryptocurrency games for a decade, sources said. The previously unreported news comes as the longtime institutional allocation firm grows its crypto portfolio alongside other industries. The firm declined to comment.

New York-based Boothbay, led by founder Ari Glass, has had several conversations this year with portfolio managers executing non-directional crypto trading strategies, according to three sources with knowledge of the matter. The sources were granted anonymity to discuss sensitive business relationships.

Among those involved in these conversations: Shane Burn, Chief Risk Officer of Boothbay. This seems to indicate that Boothbay is soon looking to write another check to a crypto manager. Sources said the company currently has two to three active allocations to crypto managers, which would rank first among multi-strategy asset managers considering crypto investments.

Among them: Balyasny Asset Management, Millennium Management and Point72 Asset Management. The third is now looking to hire a crypto manager for the company, we reported last week.

Glass, a Wall Street family office and veterinarian, manages approximately $ 1.6 billion in assets under management. The model is for Boothbay to hold this amount, submitted by its limited partners, on its own balance sheet and issue checks to promising outside managers, many of whom are executing limited capacity and out of the ordinary strategies.

The company currently has limited partnership interests in around 125 portfolio managers – so crypto is still only a very small part of a complex investment portfolio that oversees strategies ranging from stocks, debt and commodities. raw.

The company also operates a so-called first loss program. How it works: Managers put in some of their own money and are responsible for the first investment losses they incur as part of their strategy, up to a specified threshold.

Glass began supporting crypto managers through the first loss model and has since written additional checks, without a first loss requirement, to highly genealogical crypto managers.

“It becomes a way of really making sure that a manager can control the risk,” said a source, who spoke to Boothbay this year, of the company’s first loss program. “And that obviously can make sense for crypto.”

Boothbay as a business has grown. A few pointers: Ink an academic endowment and pension to an LP deal last year, the first of those institutional investors to back Boothbay. The overall workforce of the company stands at 19 internally, not counting the external traders whom it uses to manage its money.

Boothbay Fund Management has been investing in cryptocurrency games for a decade, sources said. The previously unreported news comes as the longtime institutional allocation firm grows its crypto portfolio alongside other industries. The firm declined to comment. Subscribe for the full article

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