Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Ruffer to make 'greed' assets sweat as 2012 goes down as no vintage year

1 comment
Ruffer to make 'greed' assets sweat as 2012 goes down as no vintage year

The team behind the popular Ruffer Investment Company (RIC) has vowed to make its ‘greed assets’ work harder after a challenging 2012.

Despite getting an end of year boost from a change in leadership in Japan, Steve Russell and Hamish Baillie admitted the £282 million fund had made 'painfully slow progress' over the past 12 months.

While the pair shrewdly hedged their exposure to the yen ahead of Shinzo Abe’s landslide election win and the subsequent collapse in Japan's currency, Ruffer paid dear for protection at a time when safety came with an unusually high price tag.

‘It was a year when protection was not required,’ Russell (pictured) and Baillie confessed.

While the performance of RIC’s risk, or 'greed’ assets had been palatable, with western equities contributing some 3% and Japanese stocks adding around 5%, RIC was left not just counting the cost of missed opportunity but the price of protection as it sought shelter for shareholders funds.

‘2012 will not go down in the Ruffer annals as "un grand millésime" for performance. Over the last five years we have managed to capture a good deal of the rise in markets and protect investors from the falls. However, in 2012 we made painfully slow progress when conditions appeared to be benign,’ Russell and Baillie said, as they looked for a route to better returns in 2013.

But rather than adding huge levels of risk to their portfolio, the managers of the Citywire Selection fund vowed to make key assets work harder while using index linked bonds to protect against central bankers’ decision to underwrite deflationary risks.

They said: ‘Our answer is to ensure the greed assets sweat harder rather than increasing the level of risk in the portfolio.'

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Related Fund Managers

Steve Russell
Steve Russell
6/23 in Mixed Assets - Absolute Return (Performance over 3 years) Average Total Return: 19.06%
Citywire TV
Play Navigating geopolitical risk with ETFs

Navigating geopolitical risk with ETFs

ETFGI’s Deborah Fuhr on how investors can use exchange-traded funds to position their portfolio.

Play Sarasin’s Boucher: why I like salmon with chocolate

Sarasin’s Boucher: why I like salmon with chocolate

Henry Boucher, manager of the £129 million Sarasin Food & Agriculture Opportunities fund, explains why he is gobbling up salmon and chocolate stocks.

Play Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Libby Ashby and leading wealth managers analyse what the Alibaba IPO hype means for Chinese equities, slowing growth of the UK economy and whether there’s anything left to play for in the European sovereign bond market.

Your Business: Cover Star Club

Profile: Barclays' former advisory boss on his move into property

Profile: Barclays' former advisory boss on his move into property

On paper, Rick Denton might have been expected to finish his career in banking

Wealth Manager on Twitter