Fund manager Ruffer rakes in more than £2bn as it trades to protect itself against stock market collapses
founded by Jonathan Ruffer, 68, has around $23billion (£18billion) of funds under management.
Fund manager Ruffer raked in more than £2billion last month from a series of trades to protect itself against the collapse in stock markets.
Shares fell sharply in March as the Covid-19 pandemic spooked financial markets, with the S&P 500 index in the US falling more than 30 per cent. This pushed the Vix volatility index – dubbed Wall Street’s ‘fear gauge’ – to higher levels than seen during the last financial crisis more than a decade ago.
Ruffer, based in Westminster in London, has revealed it made huge profits from a series of complicated trades, which helped offset losses as stock markets were hammered.
These included a gain of more than $800million (£633million) after buying just $22million (£17million) of derivatives that prosper if volatility rises, which usually happens if shares fall.
It also made a $1.8billion (£1.4billion) profit after buying equity, gold and credit derivatives to cushion itself against losses.
Despite all this, Ruffer’s flagship Total Return fund was down 0.8 per cent in the first quarter.
The firm, founded by Jonathan Ruffer, 68, has around $23billion (£18billion) of funds under management.