Legendary hedge fund manager reveals 30% of his fund in Bitcoin ๐จ This article is 7 years old...
Legendary hedge fund manager reveals 30% of his fund in Bitcoin
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Updated: Nov. 6, 2017 at 3:53 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Legendary American investor Bill Miller has admitted that 30% of the assets in one hedge fund are invested in Bitcoin.
His $2.3 billion investment firm enjoys growing smiles as the โBitcoin fundโ astounds with a colossal 72.5% growth this year.
Miller who has set up his own firm, Miller Value Partners LLC, spoke to the Wall Street Journal about another trademark year of gripping investments.
Having reportedly bought Bitcoin at an average of $350 you can imagine his glee as the markets bullishly ticked along to $6500 while the rest of America was out trick-or-treating.
For certain investors, Mr. Miller is full of treats as the Bitcoin portfolio makes up 30% of one particular $154 million hedge fund.
Miller went on to say that it may not be an ongoing strategy to buy more cryptocurrencies due to their unpredictable future, and he definitely wouldnโt be buying any Bitcoin at the current price.ย He told the Wall Street Journal:
โI believe there is still a nontrivial chance Bitcoin goes to zero, but each day it does not, that chance declines as more venture capital flows into the Bitcoin ecosystem and more people become familiar with Bitcoin and buy it.โ
Miller clearly saw the opportunity to make a quick buck during a boom for Bitcoin, but with turbulent times ahead investors may need a brave soul.
November brings another tricky period for the leading cryptocurrency to negotiate with a hard fork in the form of Segwit2x on the cards. Prices have broken records through the end of October, but a pull back could be likely through mid-November while Bitcoin changes direction.
Who is Bill Miller?
Everyone suddenly will tell you about Bill Millerโs marvellous investments, but who actually is he?
As you will have gathered he is a very successful American investor who proves his abilities with excellent returns. He believes in value investing, which is buying stocks on value rather than reputation or cost. A value investor will generally not care too much if a stock is cheap or expensive, but will be more interested if it is undervalued.
For example, buying Bitcoin at $350 a piece might have seemed expensive at the time, but current prices show it was hugely undervalued compared to current prices.
Since Miller has decided not to buy at the current price, one would extrapolate that he believes the price is poor value.
Miller is resoundingly known in the financial word for beating the markets year after year. This year’s 72.5% growth on his Bitcoin fund is a slam dunk even by his standards.
He made the news earlier this year after piling up Apple stock for a double-figure percentage return. Now heโs pulled off a tidy raid on Bitcoin.
Anyone holding Bitcoin this year has reason to be chuffed, not just Bill. Just one year ago the trading price was in the $700s; now weโre breaking $7000.
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