Room40 returns outside capital as Yablon rejoins Moore Capital

Paul Yablon is returning all outside investor capital at Room40 Capital and will rejoin Moore Capital Management as a macro portfolio manager, according to a person familiar with the appointment. Room40, the digital-asset hedge fund he founded, held about $262 million in regulatory assets at the end of 2025, Hedgeweek reported, citing a regulatory filing.

The fund will manage proprietary money alongside capital from a single institutional investor. The restructuring, described in an investor letter seen by Bloomberg, widens the mandate beyond digital assets into macro trading.

Room40's exit from outside capital removes a standalone digital-asset fund that had accepted investor money since its May 2022 launch, narrowing allocators' independent crypto-manager options. More than 3,100 hedge funds have closed since the start of 2020, according to Hedge Fund Research data.

Yablon cited security risks across the crypto ecosystem, including last month's $6.3 billion Binance theft, which Room40 did not hold. Attractive asymmetric crypto risk-reward has become scarcer, he wrote, and protecting capital requires sustained spending on security, technology and operations that is hard for a small standalone firm to justify.