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​Institution-grade, risk-tenable 

Crypto Investment Solutions

 

Atitlan [Noun, ah-tee-tlahn]

  1. Lake Atitlán, called “the closest thing to Eden on earth” by Lonely Planet is a two million years old crater lake nestled between three volcanoes, in the southwestern Guatemala. 

  2. Atitlán means "between waters“ in Aztec.

  3. Atitlan is a London-based Asset Manager and Investment Adviser (Appointed representative of the FCA Authorized and regulated Starmark Investment Management Limited). It is an effective diversifier for any investment portfolio with its institution-grade Crypto investment solutions and sustainable risk profile. Atitlan's Diversified Alpha Fund captures uncorrelated, market-neutral alpha via a diversified portfolio of liquid trading strategies.

The “WHY

Crypto markets are a rare “ground-floor” opportunity. At the same time, it is volatile and risky. Our mission is to make this asset class investible by aligning it with institution-grade standards. We “walk the talk” – all success fees automatically invested back into the fund.

The “HOW”

Here's our "secret" recipe for controlling risk and keeping it sustainable:

  1. Neutralize Human Bias (Quant). Quant strategies eliminate human bias associated with discretionary investing and are highly effective in exploiting market inefficiencies.

  2. Diversify Deep (Defense). Limiting exposure across the investment chain. We invest almost exclusively via other funds or Separately Managed Accounts, which allows us to deploy multiple uncorrelated strategies. We also cap our reliance on exposure to exchanges and to specific assets.  

  3. Trade the Risk Gap (Offense). Extracting value from the gap between perceived and actual risk, coupled with systemic market inefficiencies. In other words, Crypto assets are often over- or underpriced due to inaccurate attribution of risk. We trade that gap. 

Team: Sober & Experienced Pros

Our 
Story

1.0 We were now all paying attention.

Up until early 2017, our founder Yuval, like most, paid little attention to Crypto.

It wasn't because Crypto wasn't attractive. In the first 4 months of 2017 the global Market Cap of Crypto doubled in value.

Then came May.

Within the first 20 days the market cap doubled again. By the end of the summer the market would complete a 1000% growth run with trading volume multiplying by a factor of 70. 

We were now all paying attention. It was during that summer that Yuval had the key insight. Where most saw an unpredictable, volatile market, Yuval saw an alpha, hidden as a signal in the rich data sets, just waiting to be uncovered with quantitative strategies. If one can find it, all that it left is to mitigate risk. Extreme diversification would take care of most risk and keep the alpha market-neutral. It seemed so obvious. Surly someone was already doing this. 

It turns out no one was....​Oh well.

1.1 If it makes sense to do it, do it.

Yuval identified a need (that would soon be adopted by institutional investors):

A reputable investment house, experienced enough to diversify exposure and hedge risk, whilst data-savvy enough to capture an alpha with state-of-the-art algorithmic trading. 

Before the year's end, Yuval had put his vision to the test. Investing his own money in a diversified crypto-quant strategy he saw encouraging results. Based on these results, in early 2018 Yuval and his co-founder Elad Gafni convinced a small group of investors to join in. The Yellow River Delta Capital (YRD Capital) firm was founded in March 2018 - a pioneering Crypto-quant fund-of-funds.

1.2 Expecting Institutional Investors

Others were also paying attention. Institutional investors were looking for Crypto inroads. Their "checklist" described firms that were above board, administered by tier-1 service providers and regulated onshore, traditional in their best practices, due diligence, and processes, and at the same time native to Crypto and Blockchain.

1.3 Building

Atitlan Asset Management (AAM) was designed to fit that bill. YRD Capital was set up to meet a functional need in a time when teir-1 service providers avoided Crypto, and onshore regulators were still finding their way. Over time the market started maturing with more structural options opening up. Parallel to leading YRD Capital as CEO, Yuval started exploring a new architecture - a next-gen, institution-grade, Crypto-quant investment house that took advantage of new market conditions. He partnered with DFi Labs, a crypto-only data-tech powerhouse (8 PhDs), recruited global Finance talents and Crypto experts, secured the services of KPMG, NAV Consulting, Signature Bank and other first-rate providers. The corporate and legal structure were designed to allow investment not only via through third parties (Fund of Funds), but also through Separately Managed Accounts and Nostro Accounts.

Atitlan was to meet the expectations of top-rate investors while keeping maximum flexibility.

1.4 Best in class crypto investment house

In July 2021 ATITLAN ASSET MANAGEMENT LIMITED was incorporated and registered in the UK and soon thereafter registered with the FCA (FRN: 963538) as an 'Appointed Representative' (AR) of its principal firm, Starmark Investment Management Limited (FRN: 190249). A few months later we launched a new Diversified Alpha Fund. The transformation was completed In September of 2022, with the acquisition of YRD Capital by AAM and consolidation of both AUMs.

1.5 It was 2022 that demonstrated our thesis

2022 was a tough year in financial and money markets. Crypto was no exception, and as always in Crypto, the valleys are as deep as the peaks are high. However, we are quant people, and quant people favor a sober analytical review. The bottom line is simple, Crypto market cap lost more than 60% of its value in 2022. Nasdaq fell 33%. Bercley's Cryptocurrency Traders Index lost 45%. Our deep diversification and reliance on quantitative investment strategies, capped losses at 15%.

1.6 Next?

Stay tuned.

Timeline

2017
PoC

 

First robust application of quant strategies to Crypto via third party funds

03/2018
YRD Capital

Legal structure complete. HQ in Shanghai.

Rapid AUM growth with spot arbitrage & market-making foci.

2019/2020
Leadership

HQ moved to London. Team grows to 4. Ian Morley, joins as Chairman. “Best sub-100m FoHF” by HFRM. Partnership w/ Dfi Labs – “Rockstar” quant team (8 PhDs).

2021 
Atitlan

Atitlan Asset Management Limited is a UK company (13520196), registered as Appointed Representative of FCA authorized and regulated Starmark .  

Barnali Biswal, former Trading Managing Director, Goldman Sachs, joins as CIO.

Tier-1 Service providers signed: KPMG, Signature Bank, NAV Consulting 

01/22
OG CRO 

Edward Misrahi, former Partner at Goldman Sachs NYC, Founding Partner at Eton Park, 25+ years of experience.

05/22
Best in Class

 

The new Fund is launched and starts ramping up.

09/22
Merger

YRD Capital's AUM feeds into the new Diversified Alpha Fund, consolidation is complete.

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