Five hedge fund managers. Everyone makes over a billion dollars. But they could have done more with Bitcoin.
According to Bloomberg’s latest study, the top 5 hedge fund managers have each earned over $ 1 billion. The top 10 investments contributing to the success of these 5 companies include technology stocks such as Facebook Ltd and Alibaba.
Although the year was a successful one for these fund managers, their results could have been more impressive if they had invested in cryptocurrency.
Based on the results of Bitcoin 2019, which regularly outperform the S&P index, it is likely that these hedge funds could have increased their returns significantly if they had taken steps to integrate the cryptocurrency into their portfolios.
Who were the top 5 fund managers?
Coleman Chase – Tiger Global Management
Steve Cohen – Point72 Asset Management
Ken Griffin – Citadel
Jim Simmons – Renaissance Technology
Chris Hohn – TCI Fund Management
Bitcoin defeats the top 5 fund managers
At the end of 2019, Bitcoin significantly outperformed the S&P index by 29%. It also outperformed all of the funds included in the top five hedge fund manager portfolios.
While Coleman Chase’s main fund had a return of 33% at year-end, the Bitcoin price had a return of over 85% for people who bought the coin in early 2019.
As a result, replacing the worst performing portfolio assets with Bitcoin or grayscale Bitcoin Trust stocks would have increased each of the top 5 returns from hedge fund managers.
After hedge fund managers compared their results to Bitcoin results, we could see more hedge fund investments in Bitcoin and even bigger results for the top 5 managers next year.
A bright future for funds that contain Bitcoin
Only a month and a half in 2020, Bitcoin has already surpassed all S&P gains compared to 2019.
At the beginning of the year, Bitcoin was trading at $ 7,250. Now a bitcoin costs more than $ 10,000.
These are huge profits for the cryptocurrency. If business continues to develop positively, it could lead to equally great results for hedge funds investing in cryptocurrency.
Yes, cryptocurrency managers like Bitcoin Trust Grayscale are benefiting from the benefits of Bitcoin market trends. According to her press release, the trust had a record year.
Pros: “Hedge funds must enter this bull market”
According to professional cryptocurrency managers, hedge funds investing in Bitcoin are a good choice as the market shows a lot of bullish signals.
Benjamin Zennou – Managing Partner of Enigma Securities, a crypto liquidity provider and blockchain consultancy, predicts that Bitcoin’s asset allocation will increase over time as the cryptocurrency is considered less risky.
Proof of this change is the fact that “CME’s open interest in BTC futures contracts has just reached the highest open interest ever identified. It is important to note that” leveraged funds “have always done this, according to the CFTC (Commodity Futures Trading Commission) a significant majority. “
Leveraged funds are funds that use financial debt to increase returns. An increase in the leveraged funds used to pay for bitcoins could indicate that fund managers have more confidence in bitcoins as the use of leveraged funds increases the risk.
Benjamin analyst Joseph Edwards attributes three things to growing interest in Bitcoin: increased liquidity, a regulated investment infrastructure and a performance history that “shows that it has a certain level of benchmark”.
Each of these trends helps change Bitcoin’s image as a “very difficult turn” for investors – as described by Alistair Cotton – in a stable and reliable investment that deserves broader asset allocation.