Eltican Asset Management Posts 15.2% Gain in February Despite Market Declines

Eltican Asset Management, a crypto hedge fund co-founded by former Balyasny Asset Management portfolio manager Mehdi-Laurent Akkar, reported a 15.2% gain in February 2025, even as the broader crypto market experienced a significant downturn. The fund, which manages approximately $130 million in assets, outperformed major cryptocurrencies, demonstrating its ability to navigate extreme volatility.

Hedge Fund Outperformance vs. Market Slump

February was a brutal month for the crypto market:

• Bitcoin (BTC) fell over 20%, dropping from its highs near $100,000 to around $79,500 by the end of the month.
• Ethereum (ETH) suffered an even steeper decline, plunging over 30%, briefly falling below $2,000.

Despite these sharp losses, Eltican Asset Management posted a 15.2% gain, showcasing its ability to hedge against market risks and capitalize on opportunities within volatile conditions.

How Did Eltican Outperform?

1. Diversified Investment Strategies

Unlike funds heavily exposed to Bitcoin and Ethereum, Eltican likely deployed market-neutral and arbitrage strategies to generate positive returns amid the downturn. Some key tactics include:

• Long/short trading: Taking advantage of price differences between assets and market inefficiencies.
• Arbitrage trading: Exploiting price discrepancies between exchanges and derivatives markets.
• Options strategies: Using derivatives to hedge downside risk while maintaining upside potential.

2. Risk Management & Hedging

• The firm likely utilized stop-loss mechanisms and protective options strategies to mitigate exposure to Bitcoin’s and Ethereum’s steep declines.
• By adjusting its positions dynamically, Eltican avoided the heavy losses seen in many other crypto investment vehicles.

3. Alternative Asset Exposure

• The fund may have positioned itself in stablecoin yield farming, structured products, or AI-driven trading algorithms that provided uncorrelated returns.
• Alternative Layer-1 blockchains and niche DeFi tokens may have also played a role in its positive performance.

Who is Behind Eltican Asset Management?

Eltican Asset Management was founded in 2021 and has grown into a key player in the crypto hedge fund space. The firm is led by:

• Mehdi-Laurent Akkar: Former portfolio manager at Balyasny Asset Management, bringing deep expertise in macro trading and risk management.
• A Team of Experienced Traders & Analysts: Focused on algorithmic trading, quantitative research, and market-neutral strategies.

With $130 million in assets under management (AUM), Eltican remains relatively small compared to traditional hedge funds but has demonstrated an ability to navigate crypto’s extreme volatility successfully.

What This Means for the Crypto Investment Landscape

Eltican’s success highlights key trends in the evolving crypto hedge fund industry:

1. Crypto Hedge Funds Are Becoming More Sophisticated

• Many funds now employ hedging techniques similar to traditional Wall Street firms, moving beyond simple long exposure to BTC and ETH.

2. Market-Neutral Strategies Are Gaining Traction

• As volatility remains high, quantitative and arbitrage-based approaches are proving effective in generating returns regardless of market direction.

3. Institutional Investors May Take Notice

• A fund that outperforms Bitcoin and Ethereum during a downturn may attract institutional capital looking for lower-risk exposure to the crypto sector.

Challenges & Risks for Crypto Hedge Funds

Despite its strong performance, Eltican Asset Management still faces challenges:

• Liquidity Risks: Crypto hedge funds must ensure they can exit positions quickly, especially in volatile markets.
• Regulatory Uncertainty: Governments worldwide are increasing oversight on crypto investment firms, potentially affecting fund operations.
• Sustainability of Strategies: Certain arbitrage and market-neutral strategies become less profitable as markets mature and competition increases.

Final Thoughts

Eltican Asset Management’s 15.2% gain in February demonstrates how strategic trading and risk management can help crypto funds outperform even in a bearish market. While Bitcoin and Ethereum suffered significant declines, Eltican’s market-neutral approach allowed it to thrive.

With institutional interest in crypto hedge funds growing, Eltican’s success could pave the way for more sophisticated trading firms to enter the space. The key question remains: Can they sustain this outperformance in the long run?

Would you like deeper insights into Eltican’s investment strategies or the broader hedge fund landscape in crypto? Let me know.