Asset manager Ruffer got rid of bitcoin, earning more than a billion dollars from cryptocurrency in five months, according to The Times.
“When the price doubled, in December and early January, we took in some of the profits for clients. We were actively managing the position, and by the time of the sale of the last tranche in April, our profit was slightly more than $ 1.1 billion, ”said Hamish Bailey, investment director of Ruffer.
According to him, payments from the US authorities at the end of last year diverged from the bank accounts of young investors in bitcoin and other assets. Now, with the end of the lockdowns, young people will no longer spend so much time trading, he noted as one of the decision factors. At the same time, Bailey expressed confidence that financial institutions, including Ruffer and Goldman Sachs, will continue to buy bitcoin, which will contribute to its establishment as a common asset class. The sale of bitcoins was timely for Ruffer, given that the cryptocurrency peaked at an all-time high of around $ 65,000 in mid-April and then halved.
“Of course, we do not exclude the possibility of investing in bitcoin in the future. If you’re using a multi-asset strategy, assets that don’t behave like others help a lot. What’s the point in a multi-active strategy if they all behave the same? ” Bailey added.
Commenting on recent statements by Elon Musk about the impact of bitcoin on the environment, the investment director of Ruffer called them “exaggeration and misinformation.”
“Bitcoin uses less electricity than the gaming industry,” he said. – Probably 40 to 70 percent of electricity comes from renewable sources. In addition, it carries enormous social benefits. Western currencies are relatively stable, but imagine if you held Bitcoin for the past 10 years and lived in Venezuela. It has become a wonderful store of value outside the monetary system. It also allows you to transfer money across borders, and this is useful, especially in developing countries. ”
Ruffer channeled the proceeds from the sale of bitcoin into “promising” assets, for example, into inflation-indexed government bonds. Bailey expects inflation to rise faster than interest rates, as the authorities are reluctant to raise the latter due to the high debt burden. As a result, there is a strong incentive to switch to indexed bonds to protect capital from depreciation, he added.
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