RIT Capital Partners – Healthy absolute return with less risk

RIT Capital Partners (RIT) has established a strong track record over many decades. Over the last five years, its share price total return has almost doubled and it has returned to trading at a premium.

RITs investment style emphasises long-term thinking and the avoidance of permanent capital losses. In recent years, RIT has allocated capital away from equities towards uncorrelated strategies (ones whose price movements are not aligned with equities) thereby positioning itself in anticipation of a correction in equity markets.

Grow and preserve shareholders’ capital

RIT aims to deliver long-term capital growth, while preserving shareholders’ capital. It invests without the constraints of a formal benchmark, but aims to deliver increases in capital value in excess of relevant indices over time. RIT invests in a widely diversified, international portfolio across a range of asset classes, both quoted and unquoted. It allocates part of the portfolio to exceptional managers in order to ensure access to the best external talent available.

RIT compares its investment performance against an absolute hurdle based on UK inflation (Retail Price Index or RPI, plus three percentage points per annum).and an equity hurdle (the MSCI All Countries World Index 50% in sterling). In recent years it has emphasised the preservation of capital over the pursuit of short term growth.

RCP : RIT Capital Partners – Healthy absolute return with less risk