Safe investments hold back Ruffer trust's performance in 2012

Ruffer's flagship investment trust has made "painfully slow" progress in 2012, held back by protective investments in the US dollar, put options, and gold mining shares.

Investment directors Steve Russell and Hamish Baillie admitted 2012 was a year when protection was not required and, unlike previous years, had cost the trust in performance terms. "In 2012 we made painfully slow progress when conditions appeared to be benign," the pair said. "It was a year when protection was not required and, unlike most other times in the company's history, there was a monetary cost to our offsets rather than just an opportunity cost. this is symptomatic of the world we live in where safety has become very expensive." The assets that did make money for the £286m...