Crypto hedge fund Room40 Capital plans to return external capital, founder may return to Moore Capital.

Room40 Capital founder Paul Yablon is returning all outside investor capital and will manage only his own money plus a single institutional partner, expanding the strategy into macro markets. The crypto hedge fund managed roughly $262 million in regulatory assets as of end-2025 and posted about 14.4% annualized returns since its 2022 launch. Yablon told investors that attractive asymmetric risk-reward opportunities in crypto have dwindled over the past year while security and technical operations costs keep climbing. He cited Binance's recent roughly $6.3 billion hack, though the fund was not directly affected. Yablon reportedly plans to rejoin Moore Capital as a macro portfolio manager. The move matters as a sign that crypto-native funds are struggling to justify fees and infrastructure costs in a thinner opportunity set, and the next thing to watch is whether other managers follow with similar capital returns.