A London-based investment management firm, Ruffer Investment recently revealed that the company has made a profit of more than $1 billion on its Bitcoin holdings.
According to the latest statement by Hamish Baillie, Investment Director at Ruffer LLP, the investment management firm initially purchased approximately $600 million worth of Bitcoin in November 2020. Founded in 1994, Ruffer is one of the leading investment firms in the UK.
“When the price of Bitcoin doubled, we took some profits for our clients in December and early January. We actively managed the position, and by the time we sold the last tranche in April the total profit was slightly more than $1.1 billion,” Baillie said during an interview with The Times.
In November 2020, Bitcoin was trading at around $15,000 with a market cap of over $300 billion. Ruffer Investment Company allocated nearly 2.5% of the company’s funds to acquire BTC. Additionally, Ruffer termed Bitcoin as a good ‘hedging’ tool against the growing inflation.
“Our exposure to bitcoin is currently equivalent to around 2.5% of the portfolio. We see this as a small but potent insurance policy against the continuing devaluation of the world’s major currencies,” Ruffer mentioned in December 2020.
Future Bitcoin Investments
Despite the reason that Ruffer has already sold its entire Bitcoin holdings, the company is planning to invest in the world’s largest cryptocurrency in the future.
“If you have a Multi-Asset strategy then things that behave in different ways are really helpful. There’s no point being multi-asset if all your different assets move with the same dynamics,” Baillie added.
Apart from Ruffer, several other financial firms acquired Bitcoin during the latest bull run. In December 2020, Massachusetts Mutual Life Insurance (MassMutual), an American financial services company with more than 5 million clients, announced a $100 million investment in Bitcoin. In an interview with Yahoo Finance, Ray Dalio, a US-based Hedge Fund Manager, said that Bitcoin is like digital cash in nature. He compared BTC with alternative assets.
