Monthly Investment Report - March 2026

Ruffer Investment Company Limited's Monthly Investment Report for March 2026 highlights significant market volatility primarily driven by geopolitical tensions following the US-Israeli attack on Iran. This event resulted in a staggering surge in crude oil prices, which rose over 60% during the month, while other asset classes, including equities, corporate bonds, and even gold, experienced declines. The report indicates that the fund's protective assets, particularly its crude oil allocation and energy equities, which had been increased in prior months, contributed positively to performance amidst the turmoil. However, the report also reveals that the fund's hedges have not yet fully absorbed the pain from falling risk assets, reflecting a familiar dynamic in the early stages of market dislocation.

In the context of previous disclosures, this report underscores a notable shift in market conditions. The fund's strategy of increasing its exposure to crude oil and energy equities appears to have been timely, as these assets were among the few that provided a buffer against the broader market declines. However, the report also indicates that gold, often viewed as a safe haven during geopolitical crises, fell by 12% in March, suggesting that market dynamics may be shifting in unexpected ways. This decline in gold prices, despite the geopolitical backdrop, raises questions about the effectiveness of traditional hedges in the current environment, particularly as the fund had previously indicated a strong belief in gold's protective qualities.

The report also details the continuation of the fund's share buyback program, with 0.4 million shares repurchased in the first quarter of 2026. This slower pace of buybacks, attributed to a narrowing discount to net asset value (NAV), brings the total shares repurchased since December 2024 to 38 million, amounting to £106 million, or approximately 11% of shares outstanding at the start of 2025. This buyback activity reflects the company's commitment to enhancing shareholder value, although the reduced pace may indicate a more cautious approach in light of the current market volatility.

From a financial perspective, Ruffer Investment Company Limited currently has a market capitalisation of approximately £913 million. The report does not provide specific details regarding the fund's cash position or burn rate, which are critical for assessing its funding runway and ability to navigate ongoing market challenges. However, the strategic allocation to bonds, particularly the 15% investment in five-year gilts, suggests a belief in the attractiveness of fixed income in the current environment. This allocation may serve as a hedge against further market stress, particularly if economic conditions deteriorate due to the geopolitical situation.

When comparing Ruffer Investment Company Limited to its peers, it is essential to consider the broader context of the investment landscape. The fund's focus on protective assets, including crude oil and energy equities, positions it uniquely against traditional investment vehicles that may not have adapted to the current volatility. However, without specific peer comparisons available in the recent news context, it is challenging to quantify how Ruffer's strategies stack up against others in the market. The absence of detailed financial metrics for peers limits the ability to assess whether Ruffer offers superior value or if its strategies are merely keeping pace with broader market trends.

The execution record of Ruffer Investment Company Limited appears to reflect a proactive approach in managing its portfolio amidst significant market shifts. The decision to sell its allocation to Chinese A-shares entirely, in response to the potential for prolonged conflict, demonstrates a willingness to adapt quickly to changing conditions. This agility is a positive indicator for investors, suggesting that the fund is not only aware of the risks but is also taking steps to mitigate them effectively. However, the report also highlights the potential for further market stress, particularly in private credit markets and the US labor market, which could pose challenges moving forward.

In conclusion, the Monthly Investment Report for March 2026 presents a mixed picture for Ruffer Investment Company Limited. While the fund's protective strategies have yielded positive performance in a volatile environment, the broader market dynamics, including the decline in gold prices and the slower pace of share buybacks, raise questions about the sustainability of its current approach. The report can be classified as moderate, as it highlights both the strengths and vulnerabilities of the fund's strategy in the face of geopolitical uncertainties. Investors should remain cautious and closely monitor the evolving landscape, particularly as the next expected catalyst remains unclear in the current context. Overall, the headline sentiment reflects a degree of resilience, but the underlying challenges suggest that a more nuanced view is warranted.

Key insights

• ●Ruffer's crude oil and energy equities provided positive performance amid market volatility.
• ●Gold prices fell 12%, challenging traditional safe-haven assumptions.
• ●The fund's share buyback program slowed, indicating a cautious approach to capital allocation.

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