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Investor can participate in capital preservation trust’s share offer
Thursday 25 Nov 2021 Author: James Crux


Gain to date: 4.1%

Original entry point: Buy at 287.25p, 8 July 2021

Anyone who followed our summer recommendation to buy Ruffer Investment Company (RICA) is now 4.1% in the money.

Shareholders can buy new shares slightly below the market price at 296.5p on a one-for-four basis, under an offer closing on 1 December, but some applications need to be in by 5pm on 30 November. Any shares left over will be made available to investors via an offer running concurrently on mainstream investment platforms.

Ruffer’s managers believe investors are entering a new world of inflation volatility and deeply negative real yields. Its strategy has never been more relevant to protect against inflation and financial repression, where saving rates are much lower than inflation.

Managed by Hamish Baillie and Duncan MacInnes, Ruffer has a proven track record of making money in up and down markets and is seeking to raise up to £167 million. Baillie informed Shares that the proceeds will be deployed ‘fairly speedily’ and explained that investors are buying into the trust’s pre-existing asset allocation.

This spans shares and other assets including inflation-linked bonds and gold.

SHARES SAYS: Savvy investors should participate in the share offer. Buy.

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