Former President Donald Trump’s landslide victory in the 2024 U.S. presidential election came as no surprise to Quinn Thompson, the founder of the crypto hedge fund Lekker Capital. Thompson had been vocal about his support for Trump since March and made strategic investments in assets like solana (SOL) and AI-related bitcoin miners leading up to the election, despite polls suggesting a close race or a potential win for Vice President Kamala Harris.
Thompson’s bold move paid off, with Lekker Capital experiencing its most successful trade yet following Trump’s victory. Assets like SOL and AI-related bitcoin miners saw significant gains, with SOL surging 13% in 24 hours and BTC hitting a new all-time high of $75,600. Thompson’s confidence in Trump’s victory and the potential impact on the crypto sector proved to be a lucrative decision for his fund.
In a statement to CoinDesk, Thompson explained that taking public stances on political matters can be risky, but investing in macro-driven strategies like his hedge fund allows for non-consensus views that can lead to substantial gains. He highlighted the importance of developing conviction in ideas that go against popular opinions, emphasizing the potential rewards for investors who are willing to take such risks.
With Trump’s win securing control of the Senate and potentially the House of Representatives for Republicans, Thompson sees a mandate for a socially liberal yet fiscally conservative government that could benefit the crypto industry. He noted that Trump’s recent shift towards supporting crypto as a leader in the U.S. is a positive development for the sector, which has faced challenges under previous administrations.
Thompson’s successful bet on Trump was informed by voter preferences and predicted turnout issues for Democrats due to lack of enthusiasm for Harris. While there were some challenges along the way, such as a late October pullback in bitcoin prices, Thompson’s overall strategy paid off handsomely.
Looking ahead, Thompson believes that the crypto industry is poised for significant growth under a government that is more open to adoption and innovation. He expressed optimism about the positive impact of Trump’s presidency on the sector and the potential for continued success for Lekker Capital and its investors.