UK asset manager Ruffer is opening its first office in the US in New York as part of a strategy to at least quadruple the money it manages on behalf of North American clients over the next few years, according to a report by The Financial Times.
The firm, which has more than $10 billion in assets under management and traditionally caters for UK-based private clients, charities, family offices and institutions, has so far attracted almost $1 billion in assets from US pension, foundations, and endowments. According to the report, Ruffer has been holding meetings with US institutions laying out its strategy to protect against a potential US recession and continued stock market turbulence.
The report cites investment director Jenny Renton as revealing that the firm's overall portfolio currently has its lowest ever level of exposure to global equities at just 14%, while it is using inflation-linked bonds and gold as a hedge, with inflation expected to remain high and interest rates volatile. Almost a third of the UK asset manager’s portfolio is in inflation-linked bonds, including US and UK government debt, as well as gold.
According to Renton, the firm is also using derivatives, including credit default swaps, as protection in the event financial markets come under renewed pressure from interest rates.
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