The UK-based Ruffer Investment Company Limited (\u201cRuffer\u201d) has revealed in a new report that its exposure to bitcoin accounts for about 3% of its entire portfolio of around $29 billion, which would mean its BTC exposure is worth around $800 million.<\/p>\n
According to the firm\u2019s Investment Manager\u2019s Review for the period ending Dec. 31, it has bitcoin exposure via its Ruffer Multi Strategies Fund and via two proxy equities that invested in the flagship cryptocurrency: MicroStrategy and Galaxy Digital. The document reads:<\/p>\n
At the period end the combined exposure of these was just over 3%. In the short period since investing both stocks are up more than 100% and bitcoin is up 90%.<\/p>\n
The firm\u2019s allocation to BTC should represent around $861 million of its portfolio, taking into account the 3% figure. Ruffer revealed it\u2019s slightly above 3%, but according to Bitcoin.com a spokesperson said it does not recognize a $1.4 billion allocation like some news outlets reported.<\/p>\n
The investment firm added it has a history of \u201cusing unconventional protections\u201d in its portfolio, and that bitcoin and the equities that invested in BTC are another example of these protections. The small allocation, it says, was made into \u201can idiosyncratic asset class\u201d the firm believes \u201cbrings something different\u201d to its portfolio.<\/p>\n
It adds that zero interest rates have seen the investment world become \u201c\u00a0desperate for new safe-havens and uncorrelated assets.\u00a0Ruffer Investment noted it believes it is \u201crelatively early to this, at the foothills of a long trend of institutional adoption and financialisation of bitcoin.\u201d<\/p>\n
It added:<\/p>\n
Think of bitcoin\u2019s bad reputation as a risk premium \u2013 as we move through the process of normalisation, regulation, and institutionalisation, the compression of this premium can have a dramatic effect on the price. If we are wrong, bitcoin will return to the shadows and we will lose money \u2013 this explains why we have kept the position size small but meaningful.<\/p>\n
Earlier this month Jonathan Ruffer, Chairman of Ruffer Investment, revealed the firm has done \u201cmuch work on assessing the danger\u201d of investing in bitcoin and has been \u201cwatching it for a longish time.\u201d Per Ruffer\u2019s words, bitcoin is a \u201cunique beast as an emerging store of value.\u201d<\/p>\n
He added it is a \u201cseemingly non-sensical asset \u2013 but one that makes absolute sense for how we see the world.\u201d<\/p>\n
Featured image via Pixabay.<\/p>\n