Crypto hedge fund Edge Capital Management, which has very little public information, has raised $66.78 million across two decentralized finance (DeFi)-focused funds, according to regulatory filings on Oct. 19 with the U.S. Securities and Exchange Commission (SEC).
The U.S.-based Edge DeFi Fund LP has raised about $28 million from eight investors since sales opened on Feb. 1 of this year, according to the filing. The firm plans for the offering to last for more than one year for the fund. The other Cayman Islands-based Edge DeFi Offshore Fund has sold about $38.6 million to six investors since opening for sales at the start of Oct. 2021.
The firm is likely planning to raise further for both funds as it didn’t set any limits for their targeted raise, according to the SEC filings.
Venture capital (VC) investments in crypto fell 26% year-over-year in the first half of 2022 as the bear market emerged. However, the number of deal sizes remained stable, suggesting smaller but steady investments are still being made amid the crypto winter. The shift also opened the door for smaller VCs and other investment firms to find their footing.
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Edge Capital has a very small online presence through their website and lacks Twitter presence. The firm plans to seek opportunities in digital assets, blockchain and DeFi, using macro-style investing, according to its website. Macro-investing refers to strategies that aim to profit from broader market swings caused by economic or political events. Edge Capital didn’t respond to requests for comments about the raises.
The firm was founded in early 2020 by Vadim Khramov and headquartered in Boca Raton, Florida, according to LinkedIn and SEC filings. While Khramov refers to the firm as a hedge fund, the SEC filings don’t have that box checked, instead indicating “other” for the type of investment fund. Prior to Edge Capital, Khramov was active at various TradFi firms, including a macro hedge fund and Bank of America Merrill Lynch in London, according to his LinkedIn profile.
A February job listing for a DeFi analyst said Edge was interested in DeFi protocols that can deliver high returns in yield farming and macro strategies.
Khramov is the only executive or director listed in the U.S.-based DeFi fund. The offshore fund includes directors Scott Lennon and Lisa Volekaert, who are from 19 Degrees North Fund Services Ltd, a fiduciary services firm that helps companies get set up to operate in the Caymans
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