Investment management firm Ruffer, with over $27 billion under management, has confirmed that its bitcoin investment now totals $750 million. A Ruffer spokesperson told news.Bitcoin.com that this was â€œprimarily a protectiveâ€ move for the firmâ€™s portfolios, as the firm reduced its gold investment. Ruffer says that its bitcoin investment is an â€œinsurance policy against the continuing devaluation of the worldâ€™s major currencies.â€
Bitcoin Now 2.7% of Rufferâ€™s Total Portfolio
Asset management firm Ruffer Group started investing in bitcoin in November and the companyâ€™s bitcoin holdings are now worth about $750 million at the time of writing.
A Ruffer spokesperson explained to news.Bitcoin.com on Wednesday, â€œRuffer portfolios aim to preserve capital and deliver good all-weather returns, and they now have an allocation to bitcoin to help us meet that objective.â€
â€œIn November, Ruffer gained exposure to bitcoin via a specialist third-party manager. This was primarily a protective move for portfolios. It diversifies Ruffer portfoliosâ€™ investments in gold and inflation-linked bonds, and it acts as a hedge to some of the risks that we see in a fragile monetary system and distorted financial markets,â€ the spokesperson added, elaborating:
The explanation came as the price of bitcoin surpassed the $20,000 mark, setting a new all-time high. A BTC position of Â£550 million ($750 million) at the current price would mean the firm is holding about 35,877 BTC, which is roughly 2.7% of its total asset under management (AUM). According to its website, Rufferâ€™s total AUM was about Â£20.3 billion ($27.4 billion) as of Nov. 30.
Ruffer first informed its shareholders that it had invested in bitcoin on Tuesday. â€œWe wanted to give shareholders a short update on performance this year and to let you know about a new allocation to the digital currency bitcoin,â€ the firmâ€™s press release states. Regarding its bitcoin investment, the company described that â€œThis is primarily a defensive move, one made in November after reducing the companyâ€™s exposure to gold.â€ At the bitcoin price level on Tuesday, the firm wrote that the exposure to the cryptocurrency was â€œequivalent to around 2.5% of the portfolio.â€
Founded in 1994, the U.K.-based asset manager has offices in London, Edinburgh, Paris, Hong Kong, and Guernsey. Ruffer Investment Company Ltd. is the firmâ€™s investment company with shares listed on the London Stock Exchange (LSE).
â€œWe see this [bitcoin investment] as a small but potent insurance policy against the continuing devaluation of the worldâ€™s major currencies,â€ Ruffer concluded. â€œBitcoin diversifies the companyâ€™s (much larger) investments in gold and inflation-linked bonds, and acts as a hedge to some of the monetary and market risks that we see.â€
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