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Stock Analysis & ValuationRuffer Investment Company Limited (RICA.L)

Professional Stock Screener
Previous Close
£302.00
Sector Valuation Confidence Level
High
Valuation methodValue, £Upside, %
Artificial intelligence (AI)142.11-53
Intrinsic value (DCF)114.36-62
Graham-Dodd Method2.28-99
Graham Formulan/a

Strategic Investment Analysis

Company Overview

Ruffer Investment Company Limited (RICA.L) is a Guernsey-domiciled closed-ended balanced mutual fund of funds, managed by Ruffer AIFM Limited. Listed on the London Stock Exchange, the company invests globally in public equity and fixed income markets across diversified sectors. Its strategy includes direct investments or exposure through other funds in quoted equities, equity-related securities, and bonds issued by corporate, supra-national, or government entities. The fund benchmarks its performance against the FTSE All Share Total Return Index, aiming to deliver stable returns with a defensive approach. With a market capitalization of approximately £858.6 million, Ruffer Investment Company is a notable player in the asset management sector, appealing to investors seeking diversified exposure with risk mitigation. Its focus on capital preservation and absolute returns positions it uniquely in the financial services industry.

Investment Summary

Ruffer Investment Company Limited presents a defensive investment option with a low beta of 0.26, indicating lower volatility relative to the broader market. The fund's diversified global portfolio and focus on capital preservation make it attractive for risk-averse investors. With a solid net income of £10.2 million and a dividend yield supported by a £5.95 dividend per share, it offers income potential. However, its closed-ended structure and reliance on market conditions for returns may limit upside during bullish markets. The absence of debt and strong cash position (£18.8 million) underscore financial stability, but investors should weigh its performance against more aggressive growth-focused funds.

Competitive Analysis

Ruffer Investment Company Limited differentiates itself through a defensive, absolute-return-focused strategy, prioritizing capital preservation over high-risk growth. Its multi-asset approach, combining equities and fixed income, provides diversification benefits, reducing correlation to volatile equity markets. The fund's benchmark, the FTSE All Share Total Return Index, reflects its UK-centric focus but with global diversification. Competitors often emphasize higher-risk strategies or niche sectors, whereas Ruffer's balanced mandate appeals to conservative investors. Its closed-ended structure allows for long-term investment without redemption pressures, unlike open-ended funds. However, this structure may trade at discounts or premiums to NAV, introducing valuation risks. The fund's low beta suggests resilience in downturns but may lag in strong bull markets. Ruffer's competitive edge lies in its experienced management and disciplined risk management, though its performance is highly dependent on macroeconomic conditions and interest rate environments.

Major Competitors

  • Personal Assets Trust plc (PNL.L): Personal Assets Trust focuses on capital preservation through a mix of equities, bonds, and gold. It competes with Ruffer in defensive investing but has a stronger emphasis on inflation hedging. Its smaller size may limit diversification compared to Ruffer.
  • Capital Gearing Trust plc (CGT.L): Capital Gearing Trust adopts a similar multi-asset approach but with a higher allocation to index-linked bonds. It offers lower volatility but may lack Ruffer's global equity exposure. Its long-term performance is robust, appealing to conservative investors.
  • RIT Capital Partners plc (RCP.L): RIT Capital Partners combines public and private investments, offering broader diversification. It competes with Ruffer in wealth preservation but carries higher risk due to illiquid assets. Its premium to NAV reflects strong investor confidence.
  • Scottish Mortgage Investment Trust plc (SMT.L): Scottish Mortgage is growth-oriented, investing in global tech and innovation. It contrasts sharply with Ruffer's defensive stance, offering higher returns but with significant volatility. Its recent underperformance highlights the risks of aggressive strategies.
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