Verde Asset Management Puts Faith in Bitcoin Before Trump Wins

Key Points:

• Brazilian hedge fund Verde Asset Management took a small position in Bitcoin before the U.S. election.
• Verde is cautious about Brazil’s fiscal policy, is neutral on Brazilian stocks, reduces oil exposure, and holds bullish positions on the Indian rupee and bearish on the euro.

According to Bloomberg, Brazilian asset manager Verde Asset Management, led by industry veteran Luis Stuhlberger, is capitalizing on Bitcoin’s recent rally, influenced by President-elect Donald Trump’s pro-crypto stance and anticipated support from Congress.

Read more: Brazilian Authorities Seize $1.6B in Crypto and Fiat in Major Crackdown

Verde Asset Management Bets on Bitcoin Amid Trump’s Crypto Push

Verde Asset Management, one of Brazil’s most prominent hedge funds, told clients in a note it opened a small position in Bitcoin ahead of the US election on November 5. The firm has also deepened its position against the Chinese yuan, although the size of the trades has not been disclosed.

Bitcoin topped $89,000 for the first time today, a new record and fresh optimism by investors of the digital asset. Cryptocurrency lately has been seen to gain momentum due to Trump‘s friendly outlook on cryptocurrencies during his campaigns and also due to expectations of friendly crypto support in the next Congress. Since the election, Bitcoin has gained more than 25%.

Verde Performance Stands Firm Despite October Loss

In Brazil, Verde is more circumspect. The asset management firm criticized the current fiscal policy, driven by Brazil’s government, for not acting to improve along those lines of fiscal reforms promised.

Verde warned that a build-up of inflationary pressures could force the central bank to accelerate interest rate hikes. The firm is neutral on Brazilian stocks, cutting exposure to oil while being long the Indian rupee and is bearish on the euro.

The Brazilian hedge fund currently oversees around 19 billion reais, or $3.3 billion, compared with 20 billion reais managed the previous month. For October, its main portfolio recorded a small loss of 0.18% versus the return of the CDI interbank rate of 0.93%. Year-to-date, the fund is two-plus percentage points above Brazil’s Anbima Hedge Fund Index.