Ruffer stories flat November amid market rallies

LONDON – Ruffer Funding Firm Restricted, a closed-ended funding agency, reported a broadly flat efficiency for its portfolio in November 2024, regardless of a rally in U.S. inventory markets following the re-election of Donald Trump as President. The S&P 500 index skilled a big rise, rising almost 6% and reaching an all-time excessive, buoyed by investor optimism across the new administration’s insurance policies.

Notably, belongings intently related to the Trump administration, comparable to Tesla (NASDAQ:TSLA) and Bitcoin, noticed substantial features of over 40% because the election. The U.S. greenback strengthened on sentiments of American ‘exceptionalism’, whereas bond yields, which had initially surged earlier than the election, moderated after Scott Bessent was nominated for Treasury Secretary.

The bond market’s response to the election outcomes has sparked discussions concerning the potential return of bond vigilantes, a gaggle of traders who protest financial or fiscal insurance policies they take into account inflationary by promoting bonds, thus rising yields. This hypothesis arises because the Trump administration plans to chop taxes whereas funding a file fiscal deficit, with bond issuance anticipated to surpass 10% of GDP yearly throughout Trump’s time period.

Ruffer’s portfolio, which features a vital allocation to money equities, averaging 25%-30% this 12 months, remained centered on safety, mirroring the agency’s technique throughout the lead-up to the 2007 world monetary disaster. Regardless of market exuberance, Ruffer maintains a cautious stance, emphasizing the significance of a balanced portfolio geared in direction of safety, given the present market circumstances that the agency views as overpriced and concentrated.

The corporate’s fairness publicity was the most important optimistic contributor to its efficiency, supported by strategic additions across the election. The portfolio’s resilience, regardless of market occasions that contrasted with Ruffer’s conservative market outlook, displays the agency’s balanced method.

The knowledge on this article relies on a press launch assertion from Ruffer Funding Firm Restricted.

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