An investor document showed that Polychain Capital's cryptocurrency hedge fund had an annual return of 2.7% in 2016 and an annual return of 2278.8% in 2017. Subsequently, the index plummeted 60.4% in 2018 and surged to 56.1% in 2019 (as of November). This roller coaster-like change symbolizes the violent market volatility that crypto investors are familiar with, and its performance is completely out of common sense and the conventional market. The document states that investors who hold funds during the life of the hedge fund will earn a net profit of 1332.3%, so a longer-term outlook may offset the increased risk.
The Bloomberg Global Hedge Fund Index shows that the overall return of non-cryptocurrency hedge funds in 2018 was 5.9%, compared to 4.0%, 9.2% and 9.0% in 2016, 2017 and 2019. Leading hedge funds that are not in the cryptocurrency space can earn 15% to 35% of their entire cycle. Polychain Capital declined to comment.