Ruffer – an investment management firm headquartered in London – recently made over US$1.1 billion in profits trading Bitcoin.
Perfect Timing
The investment was made late last year when the cryptocurrency started slowly climbing past the 10k mark. The original investment worth $600 million proved its worth quickly – and Ruffer sold some for a $750 million profit in December and January.
According to Hamish Baillie, an investment director at the firm, the company took a hands-on approach, actively watching market trends in order to predict the best times to sell.
When the price 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.
Hamish Baille, Ruffer investment director
Considering a correction similar to the one happening now also took place in December and January, it seems Ruffer’s analysis was spot-on.
However, the company correctly predicted that the price would continue to rise. Reported to have had one of the largest Bitcoin portfolios among institutional investors, Ruffer sold everything just before Bitcoin veered onto a correction course in May.
According to Baillie, the decision to invest in Bitcoin was founded on the fact that many young people were staying at home and focusing on investing – which Baillie reportedly believes is one of the main factors driving the skyrocketing price of cryptocurrencies.
The decision to cash out also coincides with the end of heavy lockdowns – or in some countries, the end of lockdowns altogether. As a result, many young people are returning to the office, which could mean cryptocurrency trading websites see less activity.
Future Crypto Investments Not Off The Table For Ruffer
However, Baillie says that although Ruffer has exited the crypto market, for now, future investments in cryptocurrencies by his firm are definitely not off the table. For now, the profits have been invested in inflation-linked gilts – which are government-issued bonds that rise according to the retail price index.
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