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Hedge Fund Manager Joe McCann’s Strategic Meme Coin Investments for 2025

Hannah Perry | February 21, 2025

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Exploring a Hedge Fund Manager’s Meme Coin Strategy for 2025

Introduction to Meme Coins and Their Rise

When the term “meme coins” is mentioned, many conjure images of retail traders chasing hype for rapid profits. The cryptocurrency landscape changed in 2025, however, when former President Donald Trump launched his own Trump coin, bringing wider visibility to the meme coin phenomenon. In this evolving market, hedge fund founder Joe McCann has been navigating the complexities of meme coins, incorporating them into his investment strategies and laying out his expectations for 2025.

Joe McCann’s Journey

McCann began his career as a proprietary equities trader in the early 2000s, later transitioning to roles in the software industry. Despite his eclectic career path and unique appearance—described by McCann as “covered in tattoos”—he managed to attract the attention of prominent venture capitalists who encouraged him to launch his own fund. By 2022, McCann founded Asymmetric and saw significant returns from his Technology Master Fund, which was ranked third globally in March 2024, according to Preqin.

Navigating the Dual Nature of Meme Coins

Hedge funds traditionally employ various strategies and instruments to maximize potential returns while managing risk. However, McCann operates at the intersection of Wall Street and what he fondly refers to as “Meme Street”. He has developed an internally built software that tracks risk exposure across his investment positions, which is crucial in the volatile world of meme coins.

The Trading Philosophy

McCann cites emotional discipline as a key trait for successful trading. “If you get caught up in the euphoria or even the depression when markets are going down, you’re going to make poor trading decisions,” he explains. He believes that all cryptocurrencies, at some point, were meme coins located at their core within internet culture.

Characteristics of Meme Coins

Meme coins are often tied to internet memes, pop culture, or trending events, and they are distinguishable by their potential for rapid gains, sometimes exceeding 1,000%. However, trading these speculative assets comes with significant challenges, particularly regarding liquidity and volatility. This is why McCann steers clear of newer tokens while focusing on established “blue-chip meme coins,” defined as those with billion-dollar market caps sustained for at least 90 days. He limits exposure to high-risk tokens to no more than 2% of the fund’s assets under management.

Strategic Trading Example: Solana and Bonk Coin

McCann employs data and technical analysis to predict market movements. In 2023, he noticed an influx of stablecoin flows shifting from Ethereum to Solana. By monitoring Solana’s price movements, he identified a potential breakout opportunity, which in turn could attract more market attention. He opined that, similar to Dogecoin and Shiba Inu, a new meme coin on Solana would likely emerge.

Indeed, in late 2023, the Bonk coin saw a rally. McCann’s fund participated in this trading opportunity before exiting the position by December. He emphasizes that knowing when to exit during a meme coin’s meteoric rise is crucial. In an absence of historical context for setting exit points, he utilized tape reading to gauge real-time order flows and monitor Solana’s trading chart for key technical indicators.

Positioning for 2025

As he heads into 2025, McCann’s strategy is to be long on Bitcoin and Solana. Bitcoin’s growing institutional interest aligns with this choice, while he believes Solana provides a faster and more user-friendly environment compared to Ethereum, in which he is currently short. He explains that options for taking these positions include trading pairs on platforms like Coinbase or utilizing futures and options markets.

The Future Outlook for Meme Coins

While McCann recognizes the bullish sentiment surrounding crypto and meme coins due to the Trump coin’s launch, he cautions that the era of easy money may be drawing to a close. He anticipates heightened volatility in the market, which may favor strategic traders over those engaged in impulsive hype-driven trading.

Two primary factors underline this outlook. Firstly, the policies enacted during the Trump administration created both opportunities and uncertainties spanning the markets. Secondly, historical trends indicate that after consecutive strong years for the S&P 500, returns typically slow down, a pattern that is likely to be mirrored in the cryptocurrency market.

Conclusion

In conclusion, Joe McCann’s gamble on the world of meme coins emphasizes a thoughtful and strategic approach rather than mere speculation. By blending traditional trading strategies with innovative software solutions, McCann strives to uncover profitable opportunities while managing risks associated with this burgeoning asset class. The year 2025 may well be a defining moment for meme coins and those driven to navigate this complex landscape.