Paul Tudor Jones puts 5% of his portfolio in Bitcoin to protect against inflation

The trader and founder of the Tudor Investment hedge fund, Paul Tudor Jones, told CNBC that he would allocate 5% of his capital to Bitcoin because of the Federal Reserve’s policy.

Paul Tudor Jones wants his portfolio to be 5% #Bitcoin because… math. pic.twitter.com/44o9tapbSr

— The Wolf Of All Streets (@scottmelker) June 14, 2021

The billionaire is convinced that the leading cryptocurrency helps diversify his investment portfolio thanks to ‘the built-in mathematics’.

At present he is targeting a 5% stake for gold, Bitcoin, exchange-traded contracts and cash. The plan for allocating the remaining 80% of his capital he will determine after analysing the results of the Fed’s forthcoming 16 June meeting.

“For me, the first cryptocurrency is simply a way to look at, fundamentally, how I protect my wealth over time. It is yet another excellent opportunity for diversification, for preserving capital.”, explained Jones.

The investor hinted that he could increase the share of inflation instruments if monetary authorities ignore the recent spike in consumer prices. In his view, it was of ‘very significant’ character.

“If they say: ‘We are on a trajectory of temporary inflation, everything is fine,’ then I’ll go all in. I will consider purchasing gold, cryptocurrencies and exchange-traded commodities.”, Jones explained.

In a scenario in which the Fed acknowledges inflation threats and is prepared to adjust the parameters of monetary policy, the billionaire sees risks of heavy sell-offs in stocks and bonds. The investor added that this would not be “the end of the world”.

“Statements about the temporary nature of inflation run counter to my worldview”, Jones said.

In May 2020, Paul Tudor Jones valued his Bitcoin holdings at $100 million. At that time it represented about 1-2% of his wealth.

Earlier, about the readiness to invest more than $1 billion in cryptocurrencies due to rising inflation, said Carl Icahn, founder of Icahn Enterprises.

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