Ruffer LLP, a UK-based investment firm, has moved to increase its cash holdings amid concerns over declining liquidity in the US markets. Ruffer’s fund manager, Matt Smith, revealed that “Two-thirds of the roughly £22 billion ($27.6 billion) that the UK-based firm oversees now sits in cash, a record allocation.” Smith further articulated that the […]
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- Ruffer LLP increased cash holdings to two-thirds of £22 billion.
- The firm deployed cash income into insurance instruments for potential Wall Street downturns.
- Ruffer maintains caution due to US interest-rate cut optimism.
Ruffer LLP, a UK-based investment firm, has moved to increase its cash holdings amid concerns over declining liquidity in the US markets. Ruffer’s fund manager, Matt Smith, revealed that
“Two-thirds of the roughly £22 billion ($27.6 billion) that the UK-based firm oversees now sits in cash, a record allocation.”
Smith further articulated that the income generated from this cash reserve is being strategically deployed into insurance instruments such as credit default swaps and US stock options. These instruments are structured to profit in the event of a substantial downturn on Wall Street.
The fund manager highlighted the potential for a market reversal within the next three months, coinciding with a reduction in liquidity from the Federal Reserve. However, he expressed concerns about the current volatility-selling environment, suggesting a possible shift in sentiment. Smith stated, “This huge volatility-selling ecosystem could…
The post Ruffer’s Cash Allocation Amid 1987-Style Meltdown Concerns appeared first on Coin Edition.
