RIT Capital Assets Rise On Rothschild’s Currency Bets

RIT Capital Partners Plc, the U.K. investment trust led by Jacob Rothschild, reported a 16 percent increase in its net assets, helped by bets against U.S. bonds and the Japanese yen.

Assets under management climbed 290 million pounds from the start of the year to 2.14 billion pounds ($3.35 billion) at the end of July, the London-based trust said in a statement today. Net asset value rose to 1,378 pence a share for a total return of 16.9 percent.

“Our quoted equity book has outperformed markets, while our reading of foreign exchange markets has contributed to our profits,” Rothschild said in the statement. “Recognising that U.S. authorities would face difficulties in suppressing bond yields in the face of an improving economy, we held short positions in government bonds during the period.”

The proportion of the fund’s assets denominated in British pounds almost doubled to 31 percent of the fund in the first half, RIT said, while dollar assets rose to 80 percent from 62 percent. The fund stayed short the Japanese yen.

RIT reduced its holdings in emerging markets and “increased positions in the improving U.S. economy,” Rothschild said. The fund “profited as well from Japan’s bold economic strategy” by buying Japanese equities, he said.

The fund sees “interesting private and public equity opportunities” through its relationships with Edmond de Rothschild Group, Rockefeller & Co. and Corsair Capital LLC, Rothschild said. Hannah Rothschild was also named a director of the fund.

RIT shares have risen about 6 percent this year. They climbed 0.4 percent to 1,200 pence at 10:28 a.m. in London.

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