“We didn’t like market conditions and we wanted to re-evaluate what we’re doing,” Novogratz said Friday in a phone interview. “I look pretty smart pressing the pause button right now.”
Mike Novogratz, a hedge fund manager who has gotten his name from a previous work history at Goldman Sachs is now making his name in Cryptocurrencies. See more about Mike Novogratz previous hedge funds As an earlier adopter of Ethereum Novogratz made a fortune by investing over $100,000 into ether when it was under a dollar. Novogratz has benefited personally from the cryptocurrency phenomenon. After buying bitcoin and ether in early 2015, he cashed out enough of his holdings this year to book a $250 million profit.
“I didn’t want to have to deal with the schizophrenic emotional side of it,” Novogratz said. “There are just so many conflicts in that business. It was going to be more complicated than I wanted.”
Said Novogratz when talking about why he is halting the hedge fund. Novogratz cited a growing number of hurdles, including the prospect of buying bitcoin or ether for clients, while simultaneously selling crypto investments in his personal account. Yet this is exactly what he would want to do, by creating his Galaxy Digital Assets Fund that was due to start on Dec. 15th. Now with the delay, the hedge fund expects to wait at least 3-4 months for the price to stabilize, according to Novogratz. His hedge fund would be competing in the marketplace with new players, like the new Goldman Sachs trading desk.
With bitcoin dropping over 35% in the latest correction seen by the market, all wallets have been hit hard. Novogratz said he’s been selling his personal bitcoin as it passed $13,000, $16,000 and $17,000 and his ether at $800. Novogratz said he lost money today as prices plunged but has profited for the month so far.
Video footage from Bloomberg earlier today https://www.bloomberg.com/news/videos/2017-12-22/michael-novogratz-shelves-crypto-hedge-fund-plans-video