Ruffer: Why we have doubled down on Japanese banks

The managers of the Ruffer investment trust have added to their Japanese bank holdings, expecting the sector to benefit from a domestic recovery.

In their monthly report, managers Steve Russell (pictured) and Hamish Baillie said the sector offers upside not seen in the Western banking sector, so they have taken exposure to 5% of the portfolio. “We remain positive on the outlook for the Japanese economy, and the banks stand to benefit from any credit growth that accompanies a domestic recovery,” they said. “Unlike Western banks, these institutions have finished deleveraging and are ready, willing, and able to lend.” The trust continued on a run that has seen it lose 2.1% in the year to 31 March, with a large position in go...