Ruffer Investment has streamlined its unprecedented determination to buy $ 750 million worth of Bitcoin
The British investment firm justified its rationale for its massive purchase of Bitcoin in the Investment Manager’s Period End Review published yesterday. The review covers the company’s investment and fund allocation activity for the second half of last year.
Ruffer Investment is one of the largest companies in the growing list of financial institutions congregating in the Bitcoin market. The company is already directly invested in Bitcoin and has bought shares through other companies.
“We gained our Bitcoin exposure through the Ruffer Multi Strategies Fund and two proxy stocks in MicroStrategy and Galaxy Digital. At the end of the reporting period, the combined exposure of these companies was just over 3%. In the short time since investing, both stocks are up more than 100% and Bitcoin are up 90%.”
The company announced that the acquisition of the BTC acquisition was part of a portfolio diversification game for a post-COVID economy. In the document, the company stated that buying bitcoin was unconventional but important.
“Our considerations were well publicized, but in short, we have used unconventional protections in our portfolio in the past. This is another example, a small allocation to an idiosyncratic asset class that we think is changing the portfolio significantly. ”
Ruffer also believes that institutional adoption of the digital asset is currently increasing. The Investment Manager envisages greater institutionalization of the asset. Ruffer argued that many companies need a haven because the Federal Reserve’s interest rate cut has made holding cash impossible.
“With zero interest rates, the investment world is desperate for new safe havens and uncorrelated assets. We believe that we are relatively early, at the foot of a long trend of institutional adoption and financialization of Bitcoin. ”
Ruffer went on to say that his allocation of 3% was meager, albeit crucial, as the risk associated with buying Bitcoin was the reason for the low allocation.
“If we’re wrong, Bitcoin returns to the shadows and we lose money – this explains why we kept the position size small but sensible.Wrote the company.