30% position! The first major position of this value investment tycoon is Bitcoin

He had outperformed the market for 15 consecutive years, but suffered a setback during the financial crisis. Now, this value investment tycoon has achieved even more amazing results with Bitcoin.

In a recent letter to investors, Bill Miller, head of Miller Value Partners, revealed that among the $2.3 billion in assets he manages, there is a $154 million hedge fund - MVP1, which has an annual return of 72.5%.

The secret to such high returns is heavy investment in Bitcoin. The fund started investing in Bitcoin in 2016, when 5% of its assets were used to buy Bitcoin. Currently, the proportion has risen to 30%. The current price of Bitcoin on the Coinmarketcap website is as high as $5,831, while the average price of his Bitcoin holdings is only $350.

In contrast, star hedge funds like Dan Loeb's Third Point have fared much worse: So far this year, the S&P 500 has risen 14%, while Third Point's gains are slightly higher but almost as high.

Miller can be said to be the golden finger that "turns stones into gold" in the history of American mutual funds. Wall Street News mentioned earlier that in the 1990s, he was well-known in the industry for outperforming the S&P 500 index for 15 consecutive years. Even the super fraudster Madoff could not do this at his peak. Therefore, he is considered by many to be one of the greatest fund managers to date.

However, he suffered a disastrous defeat in the 2008 financial crisis, with the fund he managed suffering a 58% loss that year, 20 percentage points more than the S&P 500 index's drop that year.

Today, he has once again achieved amazing results by investing heavily in Bitcoin, but at the same time, he is not a fanatical believer in Bitcoin and still firmly believes in value investment. In addition to holding Bitcoin, as of the first half of the past few years, he also held a large number of stocks including Apple, Amazon, JPMorgan Chase and Tesla.

As for Bitcoin, he told investors that he has no control over the fate of this virtual currency. He said:

My view on Bitcoin is that it is a technological experiment that may or may not have long-term value.

Even though Bitcoin has a larger market cap than 90% of the companies in the S&P 500, it could still fail . I don’t know how that will happen, and neither does anyone else, no matter how convinced they are of their opinions.

I believe that there is a high probability that the value of Bitcoin will fall to zero, but as long as it does not fall to zero one day, the probability will continue to decline, because as more venture capital flows into the Bitcoin ecosystem, more people will understand and buy it.