The Syz Group, a family-owned and managed Swiss financial group focused on long-term investment performance, risk management, and personal service for clients has joined forces with CMCC Global, an institutional crypto asset manager.

The Syz Group has partnered with CMCC Global to launch SyzCrest Digital Uncorrelated – a fund of crypto hedge funds – set up by experts in the traditional hedge fund world and the crypto and digital asset ecosystem.

The fund will be available to investors from 1 July, the firm said in a statement.

The aim is for the fund to scale to $300 million with capacity options provided to early investors.

The proposition is a partnership between Syz Group and Crest, the hedge fund selection arm of Hong Kong crypto manager CMCC Global. Syz Capital, Syz Group’s alternatives business, will be the investment manager of the strategy and CMCC Global will act as sub advisor, the firm continued.

The launch is part of SYZ Group's strategy of delivering innovation to its global client base. In December last year, the group offered cryptocurrency custody and trading services to its Swiss and international clients. The announcements underline SYZ's commitment to unlock the value in creating a bridge between traditional and decentralised finance.

The ‘all weather’ strategy is designed to produce positive returns in both bull and bear markets, throughout the cycle, the firm said. The strategy leverages the volatility, fragmentation, and inefficiencies of this nascent asset class to target returns between 5 to 10 per cent in a bear market and 35 per cent plus in a bull market, primarily via market neutral strategies. Directionality will be added to the portfolio via trend following (CTA/momentum) strategies.

The directional allocation will leverage SyzCrest’s proprietary tools for cycle stage and strength assessment. The portfolio will be reviewed to rebalance monthly using quantitative simulations to optimise specifically for Calmar ratio.

Richard Byworth, managing partner at Syz Capital, said: “We believe a fund of hedge funds providing oversight and governance is the best way to invest in the huge opportunity presented by crypto, protect against the multiple unseen risks in the industry, and diversify across managers and strategies.”

Willy Woo, managing partner of CMCC Global and Crest added: “Digital assets are a new frontier. Presently 23,000 crypto assets exist with thousands of liquid markets added per year. Each addition brings extremes of volatility and pricing inefficiencies from which algorithmic strategies can capture exceptional returns. Despite being nascent, these markets are liquid – the top 30 digital assets enjoy the same liquidity as that we see on the SP500.”