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October 07, 2022 -Systematic Alpha GP, Ltd., an affiliate of Systematic Alpha Management, LLC (“SAM”) which manages the Systematic Alpha Intraday Trading Program, has launched the Systematic Alpha Cryptocurrency Arbitrage Fund trading pure arbitrage in digital assets on major cryptocurrency exchanges.
The Fund started trading in May 2022, employing a proprietary pure arbitrage crypto strategy, which has been traded live using proprietary capital since February 2020. The seed capital for the Fund came from Bequant – an Institutional Prime Broker and Exchange which was recognised by HedgeWeek as the Best Digital Assets Prime Broker in 2022.
The Fund trades exclusively Bitcoin and Ethereum futures and spot, exploiting arbitrage opportunities related to these digital assets trading simultaneously on different cryptocurrency exchanges. Arbitrage is the process of instantaneously buying and selling a financial instrument on different exchanges, in order to make a profit from an imbalance in price.
The Fund engaged top service providers to meet the high operational demands of institutional investors and passed the Operational Due Diligence performed by a London-based award-winning ODD service provider. Earlier this year, the Fund signed a Term Sheet with an institutional client for a $17m allocation.
Peter Kambolin, SAM’s CEO, commented, “Ultra-low latency execution and rock bottom transaction costs are essential to capture the arbitrage opportunities in digital assets and to compete with our rivals".
While some managers claim to trade arbitrage strategies, very few are trading pure arbitrage. Looking at the daily returns is a good exercise to verify the quality of an arbitrage strategy. “In our case, we rarely have a down day, and what’s more exciting is that our returns have actually accelerated in September,” noted Peter Kambolin. “While the strategy does have a limited capacity, there is still an opportunity for investors to get exposure to our fund.”
In 2019, SAM was recognized by CTA Intelligence US Performance Award as the Best CTA Cryptocurrency Fund. In 2014, SAM was the winner of CTA Intelligence US Performance Awards as the Best Short Term Trader. In 2013, SAM won the Pinnacle Award as the Best Diversified CTA under $500m AUM. In 2012, SAM won the HFM Week US Performance Awards as the Best CTA under $250m AUM and in 2009 it won the HFM Week US Performance as the Best CTA Newcomer.
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