John Lore, a lawyer who has managed over 30 cryptocurrency hedge funds, has shared his experience with an investor who approached him for his services while apologizing for turning his USD 600,000 into USD 8 million.
Embarrassed by crypto riches
The investor in question reportedly apologized for how much money he had made, even seeming embarrassed with his newfound cryptocurrency riches.
Speaking to Business Insider, Lore said: “Some of them make me feel bad about my own net worth and what I’ve done with my life. I even had a fund manager apologize for making so much money and said he’d donate a lot to charity.”
Lore went on, “They’d put in approximately USD 600,000 and they, in January, were sitting at over USD 8 million. My son took one look at that and decided he’s going to be a cryptocurrency manager.”
New York firm Capital Fund Law Group was founded by Lore, with the business having a history of specializing in hedge fund and asset management. Demand for his specialist services has been growing, with Lore telling Business Insider he has seen a huge spike in inquiries.
Managing crypto hedge funds in 2018
Lore noted that his clients come from a far more diverse background than that of traditional hedge funds, some being just amateur traders who experienced huge investment returns.
“There’s a lot of demand but I think right now there’s a lot of need for education,” Lore told Business Insider. “Never has there been a more diverse group of potential managers come to us. These aren’t just all former buy-side analysts at investment banks, they’re coming from all different aspects.”
In 2017, Bitcoin rose 1,000% over USD, and with a recent report suggesting the average ICO investor sees 82% profit. Lore has attributed this to his recent increase of clients. Despite a rocky cryptocurrency marketplace this year, Lore noted that the funds he advises are still seeing strong returns.
“I would say right now most fund managers are not looking to necessarily grow a large fund, they’re looking to grow a track record,” he said. “In 2017, the market’s the track record – anyone who’s in is doing great. No one would form a cryptocurrency fund without absolutely fantastic performance returns.”
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