The closed-ended investment company’s results for the six months to the end of December 2017 revealed its NAV had increased over the period, from £376.1m to £393.7m.
NAV per share was up marginally, from 229p to 230.9p, while its share price dropped slightly to 235.5p from 236p at the end of June.
Total assets under management increased to £398m by the end of the year, up from £378m in June.
Elsewhere, it announced a dividend per share of 0.9p.
Ruffer said some of its equity positions had performed well over the period, particularly Japanese financials and some equity positions in Games Workshop, Sophos and Lamb Weston, but these gains were largely offset by the cost of option protection.
It also admitted to being too cautious during a year when most markets were up, leading to “disappointing” returns.
The firm said in a statement: “Shareholders frequently tell us that the role the Ruffer Investment Company plays for them is to be a steady ship in a storm; capital protection and steady positive returns through all economic scenarios. In the last six months the capital protection part of that mantra has been achieved, but the return element has been disappointing – a far cry from the double digit returns of 2016.
“This explains the ‘could do better’ element to the headmaster’s half yearly report. Was the company too cautiously positioned? With the benefit of hindsight – yes – but many fragilities exist in markets today and our job is not to eke out every last cent of return in exuberant times, it is to look forward and ensure that shareholders are protected when the storm hits.”
In terms of portfolio changes over the period, Ruffer reduced its short dated index-linked bond exposure from 11% to 6% and took some profits in better performing equities approaching fair value, including TAG Immobilien, Mitsubishi Electric and Deutsche Post.
It replaced this equity exposure with “unloved sectors”, including McKesson, a pharmaceuticals distribution business supposedly under threat from Amazon, and Foot Locker.
