GP Digital allocates to a focused set of external crypto hedge funds to access specialist trading teams and mandates that are not efficient to replicate in-house. The goal is to add genuinely differentiated, crypto-native return streams with robust governance and institutional infrastructure.

Our hedge fund selection follows a rigorous, multi-layered due-diligence framework, including:

– Investment & Risk: clarity of mandate, edge definition (market-neutral, basis, volatility, quant, discretionary), risk budgeting, historical drawdowns, capacity, and behaviour in stressed markets.

– Operational & Governance: independent administrator and auditor, custody setup, risk and compliance functions, NAV calculation and valuation policies, reporting standards, and business continuity planning.

– Alignment & Transparency: fee structure, liquidity terms, communication cadence, transparency on underlying positions/venues, and willingness to engage in ongoing dialogue.

Funds are monitored continuously via performance, drawdown, and correlation tracking, as well as periodic DDQ refresh and manager calls. Allocations are resized or redeemed if risk, governance, or fit with the GP Digital portfolio deteriorates.