Ruffer’s private wealth team opened their January webinar by underlining the core purpose of the firm’s strategy: to preserve capital while generating returns in excess of cash over any rolling twelve-month period. This disciplined risk-focused approach was reflected in the performance outcomes for 2025 and in the firm’s positioning entering 2026.
The strategy delivered in excess of 10% over 2025, underpinned by a balance of growth assets and protective positions that worked in concert through varied market conditions. Notably, Ruffer delivered positive monthly returns even during market sell-offs in April, a period when markets generally weakened. This consistency over all four quarters was highlighted by the fund management team as evidence of the diversified design at work.
Within the fourth quarter itself, markets were largely benign, and this was reflected in a moderate gain for the strategy. Key contributors over the period included precious metals and selective equity exposures. Precious metals in particular played a significant role across the year. Gold itself was strong, and more importantly, gold mining equities delivered materially higher returns, amplifying the contribution of this thematic exposure within the growth allocation.
Growth assets within the portfolio also benefited from Ruffer’s global equity exposure beyond the United States. While US equities participated in the broader market rally, equity markets in other regions such as the United Kingdom, China and Japan outpaced the US, supporting the firm’s overweight outside US markets following active adjustments throughout the year.
On the protection side, Ruffer continued to hold instruments that are intended to act as true hedges rather than traditional defensive assets. While such protection detracted modestly in a calm environment, it historically proved its worth in stress episodes, most recently evident in the strategy’s ability to remain positive during market drawdowns. The firm also retained positions in unconventional protection such as credit default instruments and volatility exposures, which are structured to increase in value when markets exhibit stress, as well as currency positions like Japanese yen that are expected to appreciate sharply in crisis scenarios.
Ruffer Investment Company Limited (LON:RICA) is a British investment company dedicated to investments in internationally listed or quoted equities or equity related securities
