Jonathan Ruffer buys 'unappreciated' GlaxoSmithKline

In his latest report Ruffer said that he and Russell continue to see opportunities in Japan despite a slight drop in RIC’s NAV and share price.

‘We continue to keep the faith in Japan, where we see a policy shift to currency intervention and quantitative easing as having been postponed rather than cancelled in the wake of both the dash for austerity and the quagmire which is domestic Japanese politics,’ Ruffer said.

‘Further support to this hope is seeing the “Maginot Line” of 85 yen to the dollar being flirted with, and indeed recently breached.

‘We see our Japanese equities as both offensive and protective, the former because they are all equities and in the case of holdings in banks, brokerages and life companies, they generally exhibit a beta greater than one.

'On the other hand they are protective to the extent that if their bond yield curves steepened without inflation, the Japanese life companies would be the main offset to our golden egg within our index-linked holdings, namely our holding in the UK 2005 issue, which one might  expect to perform badly in such circumstances.’

The Citywire Selection trust trades on a 2.7% premium and shares in the investment company are priced 187.3p.