The firm’s market neutral strategy will accept investments in USD and cryptocurrencies including Bitcoin and Ethereum.
Crypto asset manager Algoz has doubled its assets under management (AUM) to more than $200 million and will launch a Cayman Islands-based fund with a US Feeder, FinanceMagnates.com learned exclusively.
The Israeli-based firm, registered as a Commodity Trading Advisor (CTA) with the National Futures Association (NFA), said the new fund structure will allow US professional institutions to invest in its quantitative trading strategies. Algoz crossed the $100 million AUM threshold in the first half of this year, managing more than 50 self-managed accounts for institutional clients. Now, the AUM doubled.
“Our Self managed account solution has been superb, propelling us to over $200 million in AUM,” CEO Tal Teperberg commented in a statement shared with FinanceMagnates.com. “However, we discovered many family office and allocators simply didn’t have a mandate to invest in an SMA and so we believed the time was right to make a battle hardened and successful Market Neutral strategy available to a much wider investment group.”
The new Cayman fund will run Algoz’s Market Neutral strategy, which the company says generates returns with low volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term regardless of broader cryptocurrency price movements. The fund will accept investments in US dollars, Bitcoin, Ethereum, XRP, and Solana.
The firm targets family offices, institutional allocators, and digital asset treasury companies looking for alternatives to simply holding tokens. Fund assets will be held through Algoz’s custody protection product and traded using an off-exchange settlement system designed to reduce counterparty risk.
Algoz partners with Zodia Custody, the digital asset custodian backed by Standard Chartered, National Australia Bank, and Northern Trust, to provide segregated cold storage for client assets. The arrangement follows a pattern the firm established in 2023 when it launched its Quant Pro product to eliminate counterparty risks that have deterred institutional investors.
“Investors will still get our custody protection model, thanks to our partnership with Zodia, and now be able to invest in a regulated, managed, and audited fund structure. We are excited for the prospect of this fund,” Teperberg said.
The master-feeder structure using a Cayman exempted company with a US Feeder vehicle has become common for crypto investment funds seeking to accommodate both US taxable investors and international clients. The arrangement allows professional investors to allocate capital through familiar regulatory frameworks while maintaining exposure to digital asset strategies.
Algoz developed its off-exchange settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer’s name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer’s name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term approach and custody protections following high-profile failures of crypto exchanges including FTX. The 2022 collapse exposed how exchanges commingled customer funds, prompting regulatory action against major platforms by the Securities and Exchange Commission.
The firm’s Quant Pro product, launched in 2023, uses off-exchange settlements through Bitfinex and custody infrastructure that keeps client assets separate from exchange and management company balance sheets. Stephen Wundke, Global Business Development Director at Algoz, said at the time that if all three parties in the relationship failed, customers would still retain their coins.
“The wallet holds the coins entrusted and protects it from being hacked or malfeasant. It protects it in the way it would, but it’s held in trust. It’s not the asset of the custodian,” he commented.
Algoz requires a minimum investment of $100,000 from professional and accredited investors. The firm allows clients to change strategies once per month without cost and permits withdrawals without the 30- to 90-day lockup periods common in traditional hedge funds.
The company was founded in 2016 by Teperberg and registered with the CFTC and NFA as a CTA. It also holds SWAP firm registration with the NFA. The firm manages more than 40 institutional accounts and has said it plans to scale capacity to $500 million in AUM.
