How to invest with the Rothschilds via RIT Capital Partners

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How to invest with the Rothschilds via RIT Capital Partners

Posted by Snouty 1123 days ago, popular 1122 days ago (http://monevator.com)
Category: Stocks | Tags: investing investment trust rcp stocks

If you’re going to put your faith and money in a manager then why not a Rothschild, with a 200-year family history to back up his credentials?

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thekritz 1122 days ago

Conspiracy theorists...start your engines haha. I guess this is the equivalent of investing in Buffet's berkshire hathaway in the US. I must fault the author for counting different types of investment vehicles as inherent diversification- private equity might be superficially different from investing in the stock market, but if the underlying companies are the same, so is the risk profile.

sunnyspeaks 1122 days ago

Are we going to promote Rothschild here? I wonder why should we choose him when it comes to puting our hard-earned money. What's the guarantee that he does not turn out another ................?

Snouty 1121 days ago

@sunnyspeaks - well, there's no guarantees with anything in the stock market but as the article says the Rothschild's have been at this for 200 years. Whatever their doing, it isn't a ponzi scheme. :)

@thekritz - Yeah, I think Berkshire is a fair analogy, although RIT has more funds and managers in the mix. Not sure I agree about the diversification, though it's an interesting point.

Firstly nearly 40% of RIT's holdings are government bonds, which must make the stock behave differently to some degree to pure equity investments. Second the 20% private equity holdings will move differently to pure equity (we had a PE boom and now the bust).

I do agree more with PE equity being less of a diversifier since it's clearly related to asset values of listed companies (if only because of the typical ultimate exit plan), but it's not a binary thing IMHO.

Of course RIT being a stock will correlate it to the market it to some degree, which is what you meant as well I guess.

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