Crypto Hedge Fund Room40 Capital Plans to Return External Capital; Founder May Return to Moore Capital

According to TechFlow on November 6, Bloomberg reported that crypto hedge fund Room40 Capital founder Paul Yablon has decided to return all external investor capital, and will invest using proprietary funds and capital from a single institutional partner going forward, while expanding its trading strategy to macro markets.

In an investor letter, Yablon noted that over the past year, attractive asymmetric risk-return opportunities in the crypto market have declined, while security and technology operating costs have continued to rise. He also mentioned Binance's recent hack of approximately $6.3 billion, but said the fund was not directly affected.

As of the end of 2025, Room40 had approximately $262 million in assets under management on a regulatory basis, with an annualized return of about 14.4% since its inception in 2022. People familiar with the matter said Yablon plans to return to Moore Capital as a macro portfolio manager.

Source: TechFlow