Monthly Investment Report - September 2026

Ruffer bought back 8.8 million shares as market volatility hit portfolios hard in September.

What the company is saying

Ruffer Investment Company Limited describes September 2026 as a difficult month, with both equities and bonds declining as yields reached multi-decade highs. The company highlights that portfolio protections failed to offset losses, but emphasizes its response by increasing bond holdings, citing compelling value and downside protection potential. Management points to a benchmark US 30-year yield above 5.6%, Brent crude over $100 per barrel, and record diesel prices as key market drivers. The report details tactical shifts: increasing net US dollar exposure to 17%, deploying liquidity into US and Japanese long-dated government bonds, initiating a small Nasdaq call option position, and reallocating from China tech and software into heavy asset stocks. The Board continued its buyback program, acquiring 8.8 million shares in Q3 2026, bringing the cumulative total since December 2024 to 46.2 million shares, or 14% of shares outstanding at the start of 2025. The tone is factual and measured, acknowledging near-term risks from higher energy prices and yields.

What the data suggests

The report confirms that Ruffer executed significant share buybacks, purchasing 8.8 million shares in Q3 2026 and a total of 46.2 million shares since December 2024, representing 14% of the starting 2025 share count. The cumulative buyback value is £130 million. Portfolio allocation shifted with net US dollar exposure raised to 17%, and new positions in US and Japanese long-dated government bonds were established. The company responded to market stress by adding to crude and energy equities, topping up agricultural commodities, and initiating a Nasdaq call option. The benchmark US 30-year yield closed above 5.6%, Brent crude exceeded $100 per barrel, and diesel prices set new highs, reflecting the challenging environment. While the company outlines its tactical responses, it does not disclose explicit performance metrics such as NAV or total return, making it impossible to assess the precise financial impact of these actions. The data is detailed on allocation and buybacks but incomplete on period performance.

Analysis

The announcement is a factual monthly investment report, providing detailed and specific disclosures about portfolio actions, market context, and share buyback activity. Most claims are realised and supported by numerical data, such as the number and value of shares repurchased and changes in portfolio allocations. Only a small fraction of statements are forward-looking, and these are framed as beliefs or expectations rather than promotional projections. There is no exaggerated language or overstatement of future benefits; the tone is measured and reflective of recent market challenges. No large capital outlay is paired with long-dated, uncertain returns—share buybacks are ongoing and quantifiable, and portfolio changes are already implemented. The absence of explicit profitability or NAV figures limits the signal to weak_positive, but there is no evidence of hype or narrative inflation.

Risk flags

• ●The absence of explicit NAV, total return, or profit/loss figures for September 2026 limits transparency and makes it difficult for investors to gauge the actual financial impact of portfolio changes and buybacks.
• ●Persistent market volatility, driven by rising yields (US 30-year above 5.6%), energy price shocks (Brent crude over $100), and geopolitical tensions (US-Iran talks, Red Sea disruptions, Ukrainian drone attacks), increases the risk of further losses despite tactical adjustments.
• ●The company's reliance on derivative protections and tactical asset allocation to offset market stress may not fully compensate for correlated declines in both equities and bonds, as seen in September, leaving the portfolio exposed if volatility rises further.

Bottom line

Ruffer's September 2026 report shows active management in response to a tough market, with 8.8 million shares bought back in Q3 and 46.2 million since December 2024, totaling 14% of the share base and £130 million spent. Portfolio shifts include a 17% net US dollar allocation, increased bond exposure, and new derivative positions, all aimed at mitigating the impact of rising yields and energy prices. However, the lack of disclosed NAV or performance figures prevents a clear assessment of whether these moves have stabilized or improved returns. The company's narrative is credible in describing its tactical responses, but investors have limited visibility into actual outcomes. The most important takeaway is that Ruffer is taking decisive action amid volatility, but the effectiveness of these measures remains unquantified without fuller financial disclosure.

Announcement summary

(LSE:RICA) Ruffer Investment Company Limited reported on its Monthly Investment Report for September 2026, noting that September was a challenging month for financial markets and the Ruffer strategy. As yields rose to multi-decade highs, both equities and bonds declined, and the positive returns from portfolio protections did not offset losses in other assets. The company added to its bond holdings, citing compelling value and potential downside protection if the economy slows. The benchmark US 30-year yield closed above 5.6%, its highest level since 2002, driven by higher energy prices and AI-propelled US economic strength. Brent crude prices surpassed $100 per barrel, and diesel prices reached all-time highs. The company deployed liquidity into US and Japanese long-dated government bonds and increased net US dollar exposure to 17%. A small call option position was initiated on the Nasdaq index. The company reduced China technology exposure, took profits in software, and reinvested proceeds into a heavy assets basket. The yen and US dollar exposures contributed positively to performance. The Board continued share buybacks in the third quarter of 2026, purchasing 8.8 million shares, bringing the total purchased since 31 December 2024 to 46.2 million shares, or £130m, which equates to 14% of the shares outstanding at the start of 2025. The company is managed by Aztec Financial Services (Guernsey) Limited as Company Secretary, with Lewis Germain as a contact. The report also notes ongoing geopolitical tensions, including resumed talks between the US and Iran, Houthi disruption in the Red Sea, and Ukrainian drone attacks on Russian oil refineries. The company topped up its agricultural commodity allocation and was active in trading yen through significant currency volatility.

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