Ruffer Investment Company (RICA) is managed with an unconstrained approach in order to grow investors’ capital over the long-term while protecting it against the key risks the managers see on the horizon. The aim is to provide a positive return in essentially all circumstances, with a focus on avoiding material drawdowns and specifically the large drawdowns that occur during crises or changes of economic environment. As we discuss under Performance, this has been achieved since launch in 2004, with the multi-asset portfolio outperforming UK equities, with significantly fewer down periods and those being of lower magnitude than equities on average. The maximum fall in NAV since inception is 8.6% compared with a fall of more than 45% in equities. Performance was particularly strong during 2020 as some long-standing protective positions paid off in a crisis, exactly as designed. This strong performance has led to the shares trading on a sustained premium (see Discount), and this is currently 2.8% despite the recent success of an open offer which raised c. £41m of fresh capital. RICA is managed by Hamish Baillie and Duncan MacInnes. They work with the broader Ruffer research team. Jonathan Ruffer, founder of the fund management company, remains actively involved in the investment strategy and decision making process. The investment process is informed by both top-down macroeconomic research and bottom-up stock specific research. A major conviction at present is that the world will see substantially higher inflation in the coming years and there is limited scope to raise interest rates to counter this. However, as we discuss under Portfolio, the managers use hedging strategies to ensure they are not over-exposed to one outcome.
17 Dec 2021
Ruffer Investment Company - Overview
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Ruffer Investment Company - Overview
Ruffer Investment Co. Ltd. (RICA:LON) | 273 -1.4 (-0.2%) | Mkt Cap: 1,005m
- Published:
17 Dec 2021 -
Author:
Thomas McMahon, CFA -
Pages:
7
Ruffer Investment Company (RICA) is managed with an unconstrained approach in order to grow investors’ capital over the long-term while protecting it against the key risks the managers see on the horizon. The aim is to provide a positive return in essentially all circumstances, with a focus on avoiding material drawdowns and specifically the large drawdowns that occur during crises or changes of economic environment. As we discuss under Performance, this has been achieved since launch in 2004, with the multi-asset portfolio outperforming UK equities, with significantly fewer down periods and those being of lower magnitude than equities on average. The maximum fall in NAV since inception is 8.6% compared with a fall of more than 45% in equities. Performance was particularly strong during 2020 as some long-standing protective positions paid off in a crisis, exactly as designed. This strong performance has led to the shares trading on a sustained premium (see Discount), and this is currently 2.8% despite the recent success of an open offer which raised c. £41m of fresh capital. RICA is managed by Hamish Baillie and Duncan MacInnes. They work with the broader Ruffer research team. Jonathan Ruffer, founder of the fund management company, remains actively involved in the investment strategy and decision making process. The investment process is informed by both top-down macroeconomic research and bottom-up stock specific research. A major conviction at present is that the world will see substantially higher inflation in the coming years and there is limited scope to raise interest rates to counter this. However, as we discuss under Portfolio, the managers use hedging strategies to ensure they are not over-exposed to one outcome.