HFR Expands Crypto Fund Performance Data

Hedge fund indexation and analysis firm HFR has announced the launch of an expanded strategy classification system for hedge funds and alternative investment products focused on the cryptocurrency and blockchain space.

The firm says it is introducing 11 new specialised sub-strategies to offer more granular insights into the different strategies operated in these markets. Under a new main strategy banner of Cryptocurrency Blockchain, the 11 sub-strategies are; arbitrage, fundamental, market-neutral, passive multi-currency, passive single-currency, quantitative, volatility, DeFi, infrastructure, multi-strategy, and fund of funds.

Over the five-year period ending February 2025, the HFR Cryptocurrency Index has produced an annualised return of +51.4%, and a cumulative gain of +694.6%, with annualised volatility of 59.5%. Over the same period, bitcoin has risen around 470%.

“HFR’s powerful expansion of the Cryptocurrency and Blockchain sub-strategies constitutes a defining, inflection point in the historic evolution of the global hedge fund industry,” claims Kenneth Heinz, president of HFR. “[It is] capturing the specialised detail and explosive growth of the space, and delineating a modular, cohesive framework for investors to increase their understanding and awareness of these high-growth strategies for investment and benchmarking purposes.

“In the same way HFR pioneered the standard strategy and sub-strategy benchmarks against which all hedge funds are now measured, we are bringing that same level of specificity and granularity to the fast-moving and ever-evolving crypto hedge fund universe,” he continues. “HFR was a leader in this space with our first crypto index launch in 2017 and has continued to build its leadership position by enabling investors and hedge fund managers to build more valuable peer groups and conduct more focused investment research on funds that specialise in this area.”