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

On November 06 that, according to Bloomberg, Paul Yablon, founder of crypto hedge fund Room40 Capital, has decided to return all external investor funds. Moving forward, investments will be conducted using proprietary capital and capital from a single institutional partner, while expanding trading strategies to the macro market.

In his investor letter, Yablon noted that attractive asymmetric risk-reward opportunities in the crypto market have diminished over the past year, alongside continuously rising security and technical operating costs. He also referenced Binance's recent ~$6.3 billion hack incident, but stated that the fund was not directly impacted.

As of the end of 2025, Room40 managed approximately $262 million in assets reported on a regulatory basis, with an annualized return of approximately 14.4% since its establishment in 2022. Insiders stated that Yablon plans to return to Moore Capital as a macro portfolio manager.