Ruffer Investment Company Ltd (LON:RICA) has announced its latest fund report.
February saw a continuation of the AI-fuelled rally with both the S&P and Nasdaq indices ending the month at new all-time highs. The equity market exuberance was given a shot in the arm by Nvidia’s earnings announcement mid-month, following which the stock rallied more than 16% in a day. Nvidia’s market value gain on that day alone was greater than the total value of US gold mining companies. The market jitters evident around a single company’s earnings release hints to us of an unstable trend that could just as easily surprise to the downside. This observation makes the derivative protections we hold especially attractive, albeit they were a drag on performance during the month.
Equities were a key driver of performance during February despite our low weight. Notably, Chinese equity markets rebounded. This turnaround followed an announcement by the Chinese securities regulator at the end of January banning stock lending. We believe sentiment and positioning in Chinese equities has reached extreme lows and this is reflected in attractive valuations. Furthermore, the incremental support being provided to asset markets by the Chinese authorities gives us comfort they are pushing in our direction. This stands in stark contrast to the setup for US equity markets where, needless to say, we remain cautious of both valuations and momentum.
Ruffer Investment Company Ltd is a British investment company dedicated to investments in internationally listed or quoted equities or equity related securities. Established in 1994, the company is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.
