Investment manager Ruffer has announced that he has made over $ 1 billion in profit in less than six months
The flagship cryptocurrency attracted huge institutional interest in the second half of last year, with many selling the idea of Bitcoin as an inflation hedge and focusing on the digital asset. Like retail investors, some institutions got into Bitcoin long-term, while some others opted for short-term positions.
Asset manager Ruffer is one of the big names who decided to become short-term sellers. Headquartered in London, the Sunday Times reported a profit of $ 1.1 billion on a $ 600 million Bitcoin purchase in November last year. The acquisition represented 2.5% of the company’s portfolio at the time.
The asset management company announced yesterday that it has paid out more than $ 1 billion by gradually selling off portions of its Bitcoin holdings. Speaking to The Times, the company’s investment director Hamish Baillie said the company began selling its holdings late last year and continued through April when it sold the last batch.
“When the price doubled, we took some profits for our customers in December and early January, ”said Baillie. We actively managed the position, and when we sold the last tranche in April total profits were just over $ 1.1 billion.”
The timing to get in and out of the Bitcoin market couldn’t have been better for Ruffer, considering that Bitcoin started its rally in November. The cryptocurrency traded hands at just over $ 15,000 at the time the company was purchased. That number had grown to around $ 40,000 by the time the company began taking profits.
Baillie stated that the decision to sell was partly due to the relaxation of COVID-19 containment measures like lockdowns. The company believed that once things returned to normal, investors would turn their attention to things other than crypto trading. The profits from the Bitcoin investment have since been channeled into other assets such as inflation-linked government bonds.
He predicts that other financial firms around the world will take significant positions on the crypto asset. While Ruffer isn’t interested in getting any more Bitcoin trades itself right now, it hasn’t closed the window entirely. Judging from Baillie’s words, the money manager may well be confident of getting back into Bitcoin at some point in the future.