The Street reported earlier today that GoldenTree, a hedge fund with $41 billion in assets under management, had added Bitcoin to its balance sheet.
According to The Street, GoldenTree bought Bitcoin to diversify away from its previous conservative, debt-based tactics. The news organization did not name its sources, instead claiming that they were "given anonymity to discuss sensitive business operations."
According to one of the sources, GoldenTree management is thinking about recruiting broad cryptocurrency investing and operational specialists.
However, according to the source, the fund's partners are already skilled in "trading crypto and making VC-style investments in blockchain startups."
According to The Street, GoldenTree is now preferring to solely buy Bitcoin.
However, it is uncertain how much Bitcoin the hedge fund has acquired, how much it wants to purchase in the future, and what type of custody solution it will utilize.
The flagship cryptocurrency is used as a portfolio diversifier by the asset management, which manages $45 billion in assets.
Tananbaum is the most recent addition to the increasing list of Wall Street giants who have delved into Bitcoin, including Paul Tudor Jones, Stanley Druckenmiller, and Bill Miller.
GoldenTree is a global asset management business that is 100% employee-owned and focuses on credit opportunities across the credit universe, including high yield bonds, leveraged loans, distressed, structured products, developing markets, and credit-themed stocks.
GoldenTree, founded in 2000 by Steve Tananbaum, is one of the largest independent worldwide credit asset managers, managing approximately $45 billion in assets across a wide range of alternative and fixed income strategies.
The firm has a proven 20-year track record of deploying capital across sectors, industries, and geographies, delivering excellent absolute and relative returns.
GoldenTree's basic, value-based investing methodology focuses on a strong margin of safety, appealing relative value, and a catalyst to generate a total return and has been continuously applied for over 25 years.
GoldenTree employs over 250 people and has offices in New York, West Palm Beach, London, Singapore, Sydney, Tokyo, and Dublin.
The partnership structure of the Firm ensures a strong alignment of interests with the Firm's investors.