Hedge fund manager Bill Miller is riding the cryptocurrency wave and taking his fund to entirely new heights.
Miller Is Getting His Hedge Fund Off the Ground
At 69 years of age, Miller knows a thing or two about investing, and ultimately launched his hedge fund about three years ago. Since then, it has risen about 46 percent. That means the numbers it originally started with have nearly doubled.
Among his top stocks include ADT Inc., Amazon and Avon Products, but Miller has also bet heavily on bitcoin, which took his fund higher than he originally anticipated. After all, bitcoin has been on the rise since April of this year, and at press time, has nearly doubled what it stood at roughly three months ago.
Miller commented that the market is rising at a modest rate, and he predicts both stocks and cryptocurrencies are looking good during the latter half of the year. He states:
With the economy growing modestly, the Fed about to embark on an easing cycle and inflation quiescent, the extreme diversion in valuations between bond proxies such as utilities and consumer staples and cyclical value stocks, is likely to begin reversing. This represents an excellent opportunity for investors to earn excess returns.
While Miller has refused to comment on just how much the fund is worth at press time or how it’s doing, it’s estimated that the fund encompasses over $126 million in assorted assets. Miller also oversees a separate $2.3 billion through a Baltimore-based association.
Cryptocurrencies have left enthusiasts feeling a little “dazed and confused” this year. For the most part, bitcoin - the granddaddy of crypto - has been doing well when compared with its performance in 2018, but it’s still suffering from volatile points here and there. For example, after jumping to $5,000 in April, it continued to gain steadily until reaching roughly $13,600 just last month.
However, at press time, following several negative press points including Trump’s tweets regarding bitcoin being not “real money” and a congressional hearing for Libra and Facebook blockchain head David Marcus, it seems bitcoin has taken a turn for the worse. This is the third time in just a few weeks where bitcoin has dropped below the $10,000 level, though at the time of writing, it is well over $9,900, suggesting $10K may once again be around the corner.
Volatility Is Still a Huge Issue
Miller himself has fallen victim to this volatility over the past month. For one thing, his fund ultimately surged just shy of 40 percent last June but fell nearly 30 percent in the month prior. This is largely because the fund “uses one to three times leverage on its investments.”
In addition, the fund grew by more than 180 percent in 2017, but ultimately fell by around 34 percent last year when the stock market experienced several unexpected drops.
Cryptocurrency is a digital currency that uses encryption (cryptography) to regulate the generation of currency and verify the transfer of funds, independently of a central bank. Cryptography is the practice and study of techniques for secure communication in the presence of third party adversaries.
Blockchain 101 · Crytpo Currency Market
Trezor: Hardware Wallet
Binance: Exchange for Traders
Ledger Nano S: Hardware Wallet
Coinbase: Exchange for Investors
CoinSwitch: Wallet-to-Wallet Exchange