The main aim of the fund is to protect investor’s capital with performance driven by the strategic allocation and stock selection. The overall asset allocation is determined by senior fund managers including Jonathan Ruffer and the research team.
The asset allocation is unconstrained across asset classes to achieve its objectives. However the portfolio will mainly invest in conventional assets such as equities, bonds, commodities and currencies. The portfolio will always maintain a balance between ‘greed’ and ‘fear’ investments where the blend of each will vary from time to time to reflect the risks and opportunities identified across global financial markets. The team are not wedded to specific research duties and follow a best ideas approach, allowing them the flexibility to be creative.
We like this fund for its unconstrained approach to investing and the managers’ willingness to hold higher levels of safer assets when they feel the markets predicate this. Ruffer have built a reputation of being more defensive managers with the aim of trying to limit losses with a history of success in application of their approach since the firm’s inception in 1994.