Ruffer Investment Company ended 2025 with a strong performance, outpacing its benchmark and reaffirming its cautious but flexible approach. After a subdued first half, performance improved sharply in the second half as global markets stabilised and risk assets recovered. The company’s asset mix, shaped to protect capital during volatility, also positioned it to benefit from key macro and sector trends, including the growing influence of artificial intelligence on markets.
The portfolio was supported by gains in gold and broader equity exposure during the latter part of the year. Equity markets rebounded as inflation pressures eased and investor sentiment improved. Ruffer also benefited from holding cash and short-dated bonds, which helped preserve capital in the earlier part of the year when conditions were less favourable. Credit strategies and defensive currency positions, including the yen, held back returns somewhat. The company continued its buyback programme, repurchasing shares at a discount to net asset value, which supported shareholder value and helped reduce the discount to NAV.
Throughout 2025, Ruffer remained focused on managing inflation and interest rate risks. The investment team recognised that inflation had become more embedded and kept the portfolio positioned to weather a range of outcomes. Gold exposure was maintained as a hedge, despite trimming some gold miner holdings after a strong run. Bond holdings were concentrated in shorter maturities to limit rate sensitivity, and exposure to long-dated government debt was reduced as yields rose and fiscal risks grew.
Ruffer Investment Company Limited (LON:RICA) is a British investment company dedicated to investments in internationally listed or quoted equities or equity related securities
