Christopher Wood, global head of equity strategy at investment firm Jefferies, cut his exposure to gold for the first time in years in favor of bitcoin, Business Standard reported.
- Wood will be cutting the gold position in his long-only asset allocation for U.S.-dollar-based pension funds to 45% from 50% and initiating a 5% holding of bitcoin (BTC), the report said.
- Wood, while remaining bullish on the yellow metal, said he'll add more BTC to the fund should the cryptocurrency drop significantly.
- The head of equity strategy had previously refrained from investing in BTC out of a fear of hacking and that it could have been declared illegal due to its sometimes use in nefarious purposes, the publication said.
- The remaining allocations in the fund are a 30% weighting in Asia ex-Japan equities and 20% in unhedged gold mining stocks.
- Wood is looking for a "dramatic cyclical recovery" after the pandemic subsides, Business Standard said.
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