RIT Capital banks Webull profits as tariff volatility bites

RIT Capital is sitting on a healthy gain from its Webull investment, but the multi-asset trust must wait patiently before it can cash out.

RIT Capital Partners (RCP ), the defensive multi-asset £2.7bn trust, is sitting on a sizeable profit from its stake in investment platform Webull following its successful IPO.

Webull, which was RIT’s second largest direct private investment, started trading on the Nasdaq on 11 April following a merger with special purpose acquisition company (Spac) SK Growth.

The shares got off to a flying start, soaring close to 375% on the second day of trading to reach $62.90. However, they have since come down and now trade around $14.43.

This appears to be down to reports that Republican senator Rick Scott expects incoming Securities and Exchange Commission (SEC) chair Paul Atkins to investigate Webull’s ties to the Communist Party of China.

Taking the IPO price of $10, Investec analyst Alan Brierley estimated this would translate to a gain of around 40% for RIT, with a valuation on trust’s books of $121m (£93m) compared to the $60m that was recorded at the end of 2024. The fund first invested in Webull in 2021.

However, it will take time for these profits to come through because RIT, alongside other major shareholders, is unable to sell any Webull shares for six months under lock-in arrangements.

Looking ahead, Deutsche Numis analyst Ewan Lovett-Turner suspects Webull’s shares will remain volatile as the major shareholders are locked up. This means there is a smaller free float that is dominated by private investors.

Challenging first quarter

Webull represents a bright spot for RIT following an otherwise challenging period. Its March net asset value (NAV) was down 3.4% month-on-month as a result of the uncertainty created ahead of US president Donald Trump’s landmark ‘liberation day’ tariff announcements. By comparison, the MSCI All Countries World index fell 5.3% over the month.

During the first quarter of 2025, RIT’s NAV was down 0.6% albeit ahead of a 3.1% fall by the benchmark. During this period, private investments were broadly flat, while listed shares were the largest detractor to performance, particularly small and mid-caps.

RIT’s allocation to ‘uncorrelated strategies’ contributed positively to performance during the first quarter, particularly gold and credit strategies.

Meanwhile, buybacks continued, with £12.4m worth of shares bought in March. This was more than January and February combined. Buybacks form part of the board’s ongoing efforts to narrow the trust’s stubborn 27% discount.

RIT’s shares are down around 1% since Trump’s tariff announcements which sent global stock markets into a spin. 

Over the past three years the trust’s shares are down 19.4%, which compares to a 2.1% loss by the average trust in the AIC’s flexible investment sector. RIT yields 2%.