Baillie, who has been with Ruffer for 10 years and managed RIC since November 2011, said he had sold off some of his Japanese equity holdings after spectacular gains in the first four months of the year.
Following his reduction of exposure some of the market’s gains were given back in May, while June was a period of relative calm.
He is now adding back the equity exposure taken out in March and said he was “pleased to be able to do so at levels around 15% below where we sold”.
The investment trust’s total return in the six months to 30 June is 10.1% and its shares currently trade at a 0.6% premium to NAV.
Baillie said he had visited Japan in June, which served to confirm the conviction he has in the longer-term investment case.
“The most encouraging take-away was not that Abenomics is considered a new thing but that there was unanimity in the desire to make it work.
“As one company director told us, for the first time in living memory the government, the central banks, the corporate sector and the electorate are all aligned in terms of what they want to achieve.”
