Bitcoin Boom Boosts Bill Miller’s Fund into the Stratosphere

November 6, 2017 James Heinsman In the News

Superstar fund manager Bill Miller loaded his MVP 1 fund with bitcoin this year, and has seen mind-bending growth of 72.5% so far this year.

Miller is known for beating the S&P 500 for 15 years straight when he worked for Legg Mason, until the 2005 recession cramped his style. In August 2016, after 35 years with Legg Mason, he jumped ship and founded his own firm, Miller Value Partners, or MVP. Last year his fund was only 5% composed of bitcoin. This year, however, after buying up the cyber-currency at an average price of $350 each, his portfolio is now made up of about 30% bitcoin. Considering that Bitcoin is now selling for $6100 each, a 1600% mark-up, the fund is doing quite well, thank you very much.

Although Miller told the Wall Street Journal that at those prices he isn’t buying anymore bitcoin, he would be willing to “put 1% of my liquid net worth in it here” if he didn’t already own a considerable pile of the digital currency.

According to Forbes Miller invested 1% of his net worth in bitcoin three years ago.

Miller’s flagship fund, MVP 1 has $154 million AUM, and has flown through the roof with a 72.5% growth spurt this year. The S&P 500 grew by 15%, and the HFRI Fund Weighted Composite Index, a measure of hedge fund performance, was up 5.9% up until the end of 3Q this year.

Not everyone is equally excited by the expansion of bitcoin. Although the number of funds with a focus on digital currencies is now at 124, nay-sayers like Howard Marks of Oaktree Capital told investors last September that bitcoin is a “speculative bubble.”

Bill Miller, bitcoin, Legg Mason, MVP,

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