The New York–based investment firm Jefferies has placed a bet on bitcoin in its global pension-fund portfolio, marking the first time in many years that gold investments have been partially reduced. The report by Business Standard cites a statement from Chris Wood, head of investment strategy at the company.
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“For the first time in several years, the portfolio’s 50 per cent allocation to physical gold will be cut by five percentage points, with the money invested in bitcoin. If there is a substantial pullback after the historic breakout above $20,000, we intend to reinforce this position,” wrote Chris Wood in Greed & Fear’s weekly letter to investors.
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A further 30% of the portfolio is allocated to Asian equities, and 20% to unhedged shares of gold-mining companies.
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As of August 31, 2020, Jefferies Financial Group’s total assets stood at $51.774 billion, according to Macrotrends.
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In the past, Chris Wood had refrained from investing in bitcoin, wary of hacking attacks and the possibility that cryptocurrency might be outlawed.
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Earlier, BlackRock’s chief investment officer Rick Rieder stated that bitcoin represents a reliable mechanism, which is far more functional than a gold bar.
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