Five hedge fund managers. Each earning more than one billion dollars. But they could have earned more with Bitcoin.
According to the latest research by Bloomberg, the top 5 hedge fund managers are estimated to have earned over $1 billion each. Among the top 10 investments contributing to the success of these 5 were tech stocks such as Facebook Ltd and Alibaba.
While it was a successful year for these fund managers, their results could have been more impressive had they invested in cryptocurrency.
Based on Bitcoin’s results in 2019, which regularly beat the S&P index, had they made steps to integrate the cryptocurrency into their portfolios, there’s a strong chance that these hedge funds could have majorly increased their returns.
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 Beat The Top 5 Fund Managers
By the end of 2019, Bitcoin vastly outperformed the S&P index’s 29% returns. It also beat all the funds included in the portfolios of each of the top 5 hedge fund managers.
Case in point:
While Coleman Chase’s main fund returned 33% by the end of the year, the Bitcoin price returned over 85% to people who bought the coin at the start of 2019.
As a result, the replacement of poorer performing assets in the portfolio with Bitcoin or Grayscale Bitcoin Trust Stocks would have upped each of the top 5 hedge fund managers’ returns.
A Bright Future for Funds Containing Bitcoin
Just one and a half months into 2020, Bitcoin has already outperformed the entirety of the S&P’s gains from 2019.
At the start of the year Bitcoin traded at $7,250. Now, one bitcoin costs over $10,000.
These are monumental gains for the cryptocurrency, and if the asset continues to behave this bullish it could mean similarly huge results for hedge funds investing in the cryptocurrency if they decide to do this.