I have been a long term investor in RIT (RIT Capital Partners). I bought the shares long ago in an ISA and didn’t record the price but it was around £8.00. Subsequently I have bought more. Today, or rather yesterday, it is £18.68.
This morning RIT published a monthly update; a snapshot of performance at the end of July. The NAV (Net Asset Value) is £25.60, up from £25.08 at the end of June. The share price is more than 26% below NAV. There are some doubters who are beginning to think RIT has transitioned from a stellar growth stock into an average international investment trust held back by high fees and opaque investments in Private Equity. I am a believer and the end-July report reinforces my conviction.
“Our portfolio outperformed both our global equities and inflation hurdles during the month against a volatile backdrop for global equities with a positive performance of +2.1% for the month, driven by strong gains in our Quoted Equities pillar, while our Private Investments and Uncorrelated Strategies pillars remained largely flat. Our meaningful US dollar position detracted from returns as sterling rallied in the wake of the UK general election.
Specific highlights for July include:
Strong performance across our Quoted Equities book (both direct and underlying managers), in part driven by our exposure to SMID cap, healthcare and cyclical stocks which fared particularly well. Our exposure to Japan was also a positive contributor, despite the small decline in the TOPIX index during the period.
Private Investments’ performance was broadly flat across the pillar. As reported in our Interim Results, there were further realisations during the month of July and we continue to see positive indicators in the market that this momentum should continue.
Investments in Uncorrelated Strategies were also flat during the period, with marginally positive contributions across credit strategies, gold and government bonds and a modest decline in performance in California carbon credits.” (RIT, 16th August 2024)
Like MP Evans RIT is buying back shares at a big discount to NAV. On Tuesday they bought 7,955 shares paying £18.29. They have now bought in 7.22% of the company’s share capital. Unlike MPE who cancel the shares they buy, RIT holds these shares in Treasury.
They are following the plan and I am confident that RIT offers a good long term inflation beating investment consistent with the Rothschild motto: Concordia, Industria, Integritas (Harmony, Industriousness, Integrity). I’m in love with RIT and I feel fine.
The Chairman doesn’t mention it but the half-yearly report suggests they have replaced the people at the top of the investment team.
For what it’s worth here is the official narrative issued on 4th January 2024.
“Maggie (Fanari) succeeds Francesco Goedhuis who, due to an illness in the family, will transition from his current role as CEO of JRCM to senior advisor to the company. The Board welcomes the continuation of this relationship and is grateful to Francesco for his long service to the company and the notable successes during his tenure as CEO.”