London-based Nickel Digital Asset Management surpasses market benchmarks with innovative fund strategies.
Nickel Digital Asset Management, Europe’s leading regulated digital assets hedge fund manager, has announced a record-breaking annual performance for its Diversified Alpha Fund in 2024. This non-directional multi-strategy fund, designed to deliver uncorrelated returns across market environments, has established itself as a standout performer in the digital assets space.
Data from BarclayHedge reveals that Nickel Digital’s Diversified Alpha Fund achieved a net return of 34.9% in 2024—the highest in its four-year history. The fund demonstrated resilience in December with a 3.8% gain, despite significant declines in leading digital assets such as Bitcoin (-3%) and Ethereum (-10%). This highlights the fund’s ability to deliver returns independent of broader market trends.
Moreover, the fund maintained profitability in 11 out of 12 months in 2024, including all four months where Bitcoin posted negative results. Its rolling 12-month volatility was reported at 5.1%, significantly lower than the underlying digital asset market, while its correlation with Bitcoin stood at just 0.06.
The Diversified Alpha Fund’s 2024 net return of 34.9% substantially exceeded traditional benchmarks such as the HFRX Equity Market Neutral Index (8.2%) and the HFRI Multimanager Podshop Index (6.9%). This positions the fund as a leader in delivering risk-adjusted returns within the digital assets sector.
Innovative Fund Structure and Strategy
The Diversified Alpha Fund employs a systematic, multi-strategy approach, wrapping a portfolio of capacity-constrained and hard-to-access digital asset strategies into a single investible vehicle. Designed to generate non-correlated returns, the fund utilises a range of market signals and factors to navigate all market environments. Its realised volatility remains below 10%, reflecting its focus on risk management.
The fund’s assets under management (AUM) surged by 150% in 2024, underscoring strong investor confidence in Nickel Digital’s approach. With the fund nearing a soft close, existing investors’ returns are being prioritised, ensuring the continued alignment of performance and capacity.
About Nickel Digital Asset Management
Nickel Digital Asset Management is an investment company based in London. It is authorised by the UK’s Financial Conduct Authority (FCA) and registered with the US Commodity Futures Trading Commission (CFTC). The company provides different digital asset investment strategies for large institutional investors. Its goal is to help traditional investors enter the digital asset market while offering different levels of risk options.
Nickel Digital uses a variety of investment strategies in the digital asset market. Its main focus is on market-neutral arbitrage and multi-strategy non-directional funds, aiming to generate profits regardless of market direction.
The company is led by a team of experienced traders and investment experts who have worked at major Wall Street banks, including Bankers Trust, Goldman Sachs, JPMorgan, and Morgan Stanley, as well as global hedge funds.
Risk management is at the heart of Nickel Digital’s investment approach. This was demonstrated during market crashes in March 2020 and May 2021, when the firm successfully protected investor capital and even achieved positive returns. Opalesque, a hedge fund advisory firm, recognised Nickel Digital among the top 2% of global asset managers for delivering strong results during these challenging times.
Since its launch, Nickel Digital has won several industry awards. These include the HFM EuroHedge Emerging Manager Award (2020), HFM Quant Performance Award (2021), Hedgeweek Digital Asset Award for Best 12-Month Risk-Adjusted Performance (2022), and the Best Digital Asset Manager Europe award by PAN Finance (2022). In 2023, Nickel Digital also received two Hedgeweek awards for delivering consistently strong risk-adjusted returns over 12 and 36 months.
Nickel Digital Asset Management Ltd is fully authorised and regulated by the UK’s Financial Conduct Authority (FCA), registered with the US Commodity Futures Trading Commission (CFTC), and is a member of the National Futures Association (NFA).
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