Bill Miller’s fund has gained 46% in H1 2019 on the back of a bitcoin rally earlier this year, the hedge fund manager told Bloomberg yesterday. Bitcoin, ADT, Amazon, and Avon Products are the biggest positions in the three-year-old fund. Bitcoin has the largest market cap of all cryptocurrencies. In June, it reached an 18-month high and rose above $13,000 and is currently trading at around $9,750.

Bullish on Bitcoin

Miller has been bullish on Bitcoin since 2014, when he invested one percent of his net worth in the cryptocurrency. At the time of his investment, Bitcoin was trading between $183 and $914. In October 2017, when the Bitcoin rally was beginning to gather pace, the Wall Street Journal reported that a third of Miller’s MVP 1 fund was invested in Bitcoin. That figure increased to about a half of the fund’s total value by December of the same year. The hedge fund manages about $2.3 billion, which includes separate accounts for mutual funds and high net worth individuals.

Thus far, the fund has not invested in any other cryptocurrency. Miller is of the opinion that most other cryptos will soon become worthless if monetary history is used as a guide.

A Mixed Track Record

Miller created the Miller Value Partners hedge fund in 2016. This was after spending 35 years at Legg Mason. During his time at Legg Mason, he was in charge of a fund, which beat the S&P 500 for 15 years up to 2005.

Despite the rally in Bitcoin prices, getting to double-digit growth in the first quarter of 2019 hasn’t been easy for Miller’s fund. In June, Miller’s fund surged by 39% as Bitcoin prices shot up. But the increase came after a 29% decline in the previous month. A possible reason for the May drop is the fact that the fund often uses leverage of one to three times in its investments. Miller’s fund has had a mixed track record. It returned 182% in 2017 but lost 34% of its overall value in 2018 after the S&P 500 dropped fell by 4%. This was a bit of a shocker for many in the investment world considering that Miller came to fame by beating the S&P 500 15 years in a row.