MIAMI–(BUSINESS WIRE)–Systematic Alpha GP, Ltd., a subsidiary of Systematic Alpha ManagementLLC (“SAM”), which runs the Systematic Alpha intraday trading program, has launched the Systematic Alpha Cryptocurrency Arbitrage Fund, trading pure digital asset arbitrage on major cryptocurrency exchanges.
The fund started trading in May 2022, using a proprietary pure arbitrage crypto strategy, which has been trading live with proprietary capital since February 2020. The fund’s seed capital came from Beaking – an Institutional Prime Broker and Exchange that has been recognized by HedgeWeek as the Best Prime Digital Asset Broker in 2022.
The Fund exclusively trades Bitcoin and Ethereum futures and spot contracts, exploiting arbitrage opportunities related to these digital assets traded simultaneously on different cryptocurrency exchanges. Arbitrage is the process of instantly buying and selling a financial instrument on different exchanges, in order to profit from a price imbalance.
The Fund has used leading service providers to meet the high operational demands of institutional investors and has passed operational due diligence by an award-winning London-based SDG service provider. Earlier this year, the Fund signed a term sheet with an institutional client for an allocation of $17 million.
“Ultra-low latency execution and lowest transaction costs are essential to capture arbitrage opportunities in digital assets and to compete with our rivals,” said Peter Kambolin, CEO of SAM.
While some managers claim to trade arbitrage strategies, very few trade pure arbitrage. Reviewing daily returns is a good exercise to check the quality of an arbitrage strategy. “In our case, we rarely have an off day, and what’s more exciting is that our returns actually accelerated in September,” noted Peter Kambolin. “Although the strategy has a limited capacity, investors still have the option of gaining exposure to our fund.”
In 2019, SAM was recognized by the CTA Intelligence US Performance Award as the best CTA cryptocurrency fund. In 2014, SAM won the CTA Intelligence US Performance Awards as the best short-term trader. In 2013, SAM won the Pinnacle Award as the best diversified CTA under $500 million in assets under management. In 2012 SAM won the HFM Week US Performance Awards as the best CTA under $250 million AUM and in 2009 he won the HFM Week US Performance as Best Newcomer CTA.