From words to actions. Last month, billionaire Paul Tudor Jones said in an interview with CNBC that “all roads led to inflation” and that consequently “he was Long on gold and Long on Bitcoin”. This successful American philanthropist and asset manager is known for having anticipated certain major economic crises and has been warning about galloping inflation in his country for years now. But the gentleman is not really a whistleblower and his credo is investment. Thanks to the quarterly declaration of his positions on the markets, we have just learned that he has put his words into action and that he has invested in what he considers to be two safe haven values: the yellow metal and Bitcoin.
- Paul Tudor Jones recently invested heavily in Bitcoin and gold, in response to his concerns about inflation.
- The Tudor Investment Corporation quintupled its investments in Bitcoin over the last quarter, reaching a value of $230 million.
Philanthropist and successful investor fears inflation more than ever
Paul Tudor Jones has several hats: one as CEO of the Tudor Investment Corporation, a fund with just over $12 billion in assets under management, as a benefactor of the Fondation Robin Hood which he created and which works to reduce poverty in New York and a last, less official, darling of the American economic media! The man, a good customer of the written press and television, always has a punchline to comment on the economic and political situation of his country and in recent years, he repeatedly repeated that theinflation was a serious problem.
Since 2021, and even 2020, he claims that UNITED STATES and their monetary policy lead straight to theinflation of fiat money and that we must protect ourselves from it by all means. This is how, little by little, he came to the idea of investing in Bitcoin alongside others safe havens more traditional like gold and raw materials:
“I know for sure that I want to have 5% in gold, 5% in bitcoins, 5% in cash and 5% in commodities. »
Paul Tudor Jones in 2021 on bitcoin investing – Source: Account X (Squawk Box)
And the rest? What will he do with the 80%? Here is his response in 2021:
“The rest of the allocation (80%) will depend on what the US Federal Reserve does (…) »
Paul Tudor Jones in 2021 on bitcoin investing – Source: Account X (Squawk Box)
Apparently, the action of the FED did not please him, because three years later, Mr. Jones significantly increased his exposure to one of the four assets mentioned above and it is not cash.
Paul Tudor Jones invests heavily in commodities, gold and Bitcoin to hedge
In the quarterly declaration of financial positions last June (called 13F), the Tudor Investment Corporation reported owning 869,565 shares of BlackRock's cash Bitcoin ETF, but presumably that wasn't enough. Three months later, same exercise, but this time, we learn that the management company has multiplied its investments in the Bitcoin with 4.4 million shares of the IBIT of BlackRock for a value of $230 million.
To the eternal question of why he invests so much in the first cryptocurrency on the market, the businessman tirelessly answers the same thing and systematically talks aboutinflation and increase in federal debt. For him, these two parameters are decisive in his investment choices which have recently focused on gold, raw materials and therefore, Bitcoin.
People like Paul Tudor Jones are more of the pragmatic type and if he is so exposed to Bitcoin, it is first of all because he really thinks that it could help him get through this period of significant inflation without losing money. Then, if it can lead to making a profit, he won't deprive himself of it! In certain economic contexts, Bitcoin is ultimately a monetary tool used by both the very rich and the poorest to conserve their capital, whatever it may be.
