Travis Kling, a former equities portfolio manager has left billionaire Steven Cohen’s Point72 Asset Management to set up his own digital assets fund as reported by Bloomberg on 21st September.
The company, Point72 is an asset management firm founded in 2014 as the successor of investment firm SAC Capital Advisors. The latter of apology feeling guilty to federal insider trading charges and paid a $1.8 billion as fine. The company has offices based in New York City, Singapore, Hong Kong, Tokyo, London, Paris, and Palo Alto, while its staff is filled with erstwhile IBM executive Timothy Shaughnessy as a chief operating officer.
With this, Ikigai, the new Los Angeles-based fund is expected to start on October 1 with partners’ capital, having various plans to raise $15 million of outside capital as on 1st November. While in mid-2019, Kling has already organized plans to enhance Ikigai’s tokens portfolio to $100 million and its venture fund to $33 million.
During the time of launch, most of the funds will be in the form of cash. The fund has an additional fee of two percent to custody costs, while a minimum investment for accredited investors will be allowed for $250,000.
Amid this, Kling expressed confidence in cryptocurrencies even though the current slash in prices in markets with interest in the space continues to grow. Further speaking on the subject matter, Kling said in his statement that cryptocurrency will become a multi-trillion-dollar asset class going forward. Further, he added: “It will be part of our everyday lives. It’s still very early, but the development and growth of this technology will be exponential.”
Additionally, in July Cohen supported Arianna Simpson’s crypto and blockchain based hedge fund Autonomous Partners with his private equity firm Cohen Private Ventures. Simpson then said that her fund has resisted from investing in Ripple (XRP) with pending clarification from U.S. regulators as to whether XRP would be classified as a security or not.
Beside this, in April, it was expected that almost 10 percent of crypto hedge funds could face shut down in the subsequent eight months due to certain uncertain situations related to market health and regulatory compliance. With this, Kyle Samani, co-founder of U.S.-based fund Multicoin Capital, profusely said that “new capital has slowed, even for a higher-profile fund like ours.”