Brevan Howard Asset Management, an alternative investment management platform, has reached a deal to purchase Liquid Opportunities fund, operated by crypto investment outfit Dragonfly Capital, Bloomberg has reported.
Established in June 2021, Liquid Opportunities fund has been supervised by Kevin Hu, Ashwin Ramachandran, and Lawrence Diao.
With the acquisition of the long-short hedge fund, Brevan Howard aims to boost its reach in the digital assets market.
Following the completion of the deal, the fund will run under Brevan Howard’s crypto and digital assets arm, Brevan Howard Digital.
The Liquid Opportunities fund’s current long-short trading strategy reflects Brevan Howard Digital’s active trading method, one of the people told the publication.
An internal document of Dragonfly seen by Bloomberg News said: “After extensive discussions, we decided that Brevan Howard, one of the largest hedge funds in the world, was the right long-term home for Kevin and his team.”
In May last year, Dragonfly secured $650m for its third venture fund right before the failure of Do Kwon’s algorithmic stablecoin TerraUSD.
Brevan Howard’s latest plan to spinoff Liquid Opportunities has no link with the chaos witnessed by the crypto industry last year, including the downfall of FTX, added the document.
It appeared that Dragonfly, which bought hedge fund MetaStable Capital in August last year, found “managing two hedge funds with different strategies under the same umbrella incurs a surprisingly large amount of friction,” according to the Bloomberg report.
The document added: “For existing Dragonfly Venture Fund and MetaStable LPs, nothing changes. “This spin-out simply means we can streamline our operations and focus more fully on our bread and butter, which is long-term investing.”
