Virginia Fairfax Public Retirement Fund Seeks More Direct Cryptocurrency Exposure

The strong performance of digital assets this year has caught the attention of several traditional funds in the market. According to a source, several Virginia Fairfax public pension funds are seeking more direct exposure to cryptocurrencies.

Virginia Fairfax Public Retirement Fund wants more direct exposure to cryptocurrencies

The Fairfax County Sheriff’s Pension System and the Fairfax County Employee Pension System are reportedly planning to invest $ 50 million in the main fund of Parataxis Capital Management LLC, which is buying some crypto and digital asset derivatives. Of course, this requires the approval of the board of directors.

The two Fairfax funds collectively manage $ 7.15 billion in net assets under management (AUM). Speaking to Bloomberg, Katherine Molnar, Chief Investment Officer of the Police Officer Pension Fund, said:

“We believe that volatility will continue to exist in crypto, and it will be good for value traders. It’s an area that will grow in acceptance and interest. We don’t think it’s effective enough, so we think there is an alpha opportunity that we can take advantage of. “

These Fairfax funds previously invested in Morgan Creek Asset Management and also in crypto ventures like Blockchain Capital. The majority of their investments go to start-ups that are active in this field. Fairfax calls them venture capital investments.

Because the Parataxis fund focuses on actual cryptocurrencies, it allows Fairfax to have more direct exposure to digital assets.

The Virginia Public Retirement Fund would like a more direct exposure to crypto-Fairfax relies on the volatility of the crypto market

The volatility of the cryptocurrency market has sometimes helped deliver excellent returns for investors. As a result, Fairfax is also expanding its investments in the crypto space. Molnar, for example, planned a 2% crypto exposure for a $ 1.95 billion police pension fund.

At the end of June, cryptocurrencies accounted for 7% of assets due to their sharp rise in prices. So crypto “didn’t make a significant contribution to performance in the second quarter,” said Molnar.

However, Molnar says that they are still not ready to buy the cryptocurrency directly from the market. “Three years ago we were uncomfortable betting on which cryptocurrency would rise to the top,” she said. “And I’m not sure we felt comfortable doing it today.”

Parataxis was founded two years ago in 2019 and now has $ 55 million in assets under management. The two Parataxis funds invest Bitcoin in derivatives and even DeFi tokens like MakerDAO. Edward Chin, who started the Parataxis Fund, said:

“This is our first pension fund. We’re talking to a few other people and also a few sponsors. Obviously people are trying to get in touch. “

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