OI14: Behind the Scenes of a Crypto Hedge Fund ft. Michael Hall & Anatoly Crachlilov

This podcast episode interviews the CEO and CIO of Nickel Digital, a crypto hedge fund, about their firm's evolution and risk management strategies. The discussion traces their transition from an arbitrage-focused fund to a multi-manager, multi-strategy setup with 36 independent trading teams. Key aspects covered include their unique risk management system, which utilizes automated alerts and real-time portfolio monitoring, and their compensation structure, which features high performance fees paid quarterly without copy trading or internal alpha capture. The fund's approach emphasizes incentive compatibility and transparency, allowing for rapid scaling of successful teams and efficient risk management in the 24/7 crypto market. The founders also discuss their plans to offer customized fund mandates to cater to a wider range of investor preferences.