Overview#
Barclays has recently started covering RIT Capital Partners and Caledonia Investments, giving both an 'overweight' rating. This means they believe these investments are likely to perform better than the market average. The analysts highlighted that both companies are trading at discounts to their net asset value (NAV) that are near historic lows.
Current Discounts to NAV#
As of April 22, RIT Capital was trading at 2,200 pence, which represents a 25.9% discount to its NAV of 2,967 pence per share. Meanwhile, Caledonia was trading at 367 pence, reflecting a 35.3% discount to its NAV of 567.6 pence. NAV is essentially the value of a company's assets minus its liabilities, providing a snapshot of its worth.
Performance and Returns#
Barclays analysts noted that both companies have shown a strong ability to preserve capital during market downturns while delivering returns that outpace inflation over the long term. RIT Capital achieved a one-year NAV total return of 16.0% and an annualized return of 8.4% over the last ten years. In comparison, Caledonia reported a one-year return of 5.4% and a 9.2% annualized return over the same ten-year period.
Portfolio Composition and Debt Levels#
RIT Capital's portfolio includes 33% private assets, while Caledonia has a higher proportion at 64%. RIT Capital has seen significant realizations from private investments, totaling £232 million in 2025. On the debt front, RIT Capital's net gearing, which indicates the level of debt relative to its NAV, has decreased to 3.2% as of December 2025, down from 19.9% in 2016. Caledonia, on the other hand, carries no fund-level debt and has sufficient liquidity to cover its commitments.
Ownership and Institutional Appeal#
The Rothschild family holds a significant 22.6% stake in RIT Capital, while Caledonia's Cayzer family concert party owns over 50%. This high level of family ownership may limit the appeal of these investments to institutional investors, contributing to the observed discounts in their market valuations.