Wealth Manager - the site for professional investment managers

Register to get unlimited access to 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
15/41 in Mixed Assets - Absolute Return GBP (Performance over 3 years) Average Total Return: 13.79%
Citywire TV
Play Taxicab Tenner: AXA IM's Nicolas Trindade

Taxicab Tenner: AXA IM's Nicolas Trindade

After a summer break, it is the turn of AXA Investment Manager's Nicolas Trindade to give a £10 view of how fixed income is faring.

Play Wealth Manager Olympics: the Relay

Wealth Manager Olympics: the Relay

In the final round of the Wealth Manager Olympics, our intrepid athletes team up for the relay.

Play Wealth Manager Olympics: the Shot Put

Wealth Manager Olympics: the Shot Put

After busting a gut in the 100m sprint, our wealth manager Olympians displayed their brute strength in the shot-put.

Read More
Your Business: Cover Star Club

Profile: gearing up for the shift from consolidation to start-ups

Profile: gearing up for the shift from consolidation to start-ups

‘I think the industry is evolving rapidly, but not necessarily as a whole,’ says the head of recently launched Charles Nicholson AM

Wealth Manager on Twitter