Jonathan Ruffer buys 'unappreciated' GlaxoSmithKline

Jonathan Ruffer’s £179 million investment company has taken up a new position in GlaxoSmithKline.

After suffering a slight 0.1% dip in its net asset value (NAV) in August, Ruffer announced the company had snapped up a stake in the pharmaceutical giant, in line with its broader theme to buy into large undervalued companies with sustainable dividends.

‘We feel the company’s growth prospects are underappreciated,’ Ruffer said, outlining the trust's latest position in his August update to investors.

The new position is not big enough to appear in Ruffer Investment Company’s (RIC) list of top 10 holdings.

Keeping faith in Japan

Like its NAV, RIC’s share price also fell back in August, dropping 0.3%.

While the UK and Japanese markets narrowly failed to cling on to their July gains, the volatility in risk assets continued to grow.

Such uncertainty clearly carries the risk of whipsawing, Ruffer said, and warrants careful monitoring.

‘We endeavour to keep our eyes on what we see as the final inflationary destination, while fully acknowledging there will be deflationary potholes en route.’

In September, Ruffer and his co-manager Steve Russell told investors the fortunes of the fund over the next 12 months comes down to their £35.8 million bet on Japan – which the duo has achieved via exposing 21% of the portfolio’s assets to the region.