- The Head of Product Messari, Qiao Wang bashed on the crypto hedge fund following his tweet on March 29.
- At his latest tweet, Wang stated that many cryptocurrency hedge funds decided to ‘long’ Bitcoin (BTC) as its price dropped considerably.
- He says managing money of others differs from managing one’s own money.
The Head of Product Messari, Qiao Wang bashed on the crypto hedge fund following his tweet on March 29.
Qiao Wang on Twitter
At his latest tweet, Wang stated that many cryptocurrency hedge funds decided to ‘long’ Bitcoin (BTC) as its price dropped considerably. Adding to this he said that this strategy is helpless in terms of both macro ecosystem and risk management.
Hearing that a lot of crypto hedge funds are *aggressively* long Bitcoin.
I think they are completely out of touch with what’s happening in the macro environment and clueless about risk management.
— Qiao Wang (@QWQiao) March 29, 2020
Further, Wang explained about an ‘aggressively’ strategy means the portfolio that is long as much like the Bitcoin (BTC) was before the recession. The community significant professional asset managers do not have an accord on the future flagship cryptocurrency.
Managing the money of others differs from managing one’s own money
However, Mr. Wang notified that he was pointing his criticism to the management of assets that belong to limited partners. He says managing money of others differs from managing one’s own money. As for his own funds, he can afford to take a 50% drawdown.
Managing other people’s money is different from managing you own money.
Personally I can afford to take a 50% drawdown, but taking that much risk with LP’s money is totally reckless.
— Qiao Wang (@QWQiao) March 29, 2020
If the so dropdown occurs, the BTC price will be lowered to $3,125, that is much less than it was on the bottom of crypto on Black Thursday.
The believer in decentralized technologies suggested a solution that will be suitable for crypto hedge funds. As per his view, the crypto hedge funds depend upon the mandate of a given fund and thus, he would put some assets in cash.
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