Polychain Capital saw its assets under management drop to $591.5 million in Q4 2018 from its $1 billion peak, the Wall Street Journal reported.
The paper cited sources who say the decline is due to a fall "in the value of its holdings" due to the bear market "rather than  redemptions by investors." It added that while the San Francisco hedge fund saw a 39% dip between April and December, this paled in comparison to the estimated 70% drop throughout the crypto market over the same timeframe.
In December of last year, The Block reported that Ryan Zurrer, a founding principal of Polychain Capital was fired. Following his departure, Zurrer has chosen to advise firms, including Polkadot, a Polychain-backed blockchain project.
A Polychain spokesperson declined to comment.