Ruffer: Asset managers are about to learn some lessons

Ruffer founder Jonathan Ruffer has warned investors holding a "conventionally diversified" portfolio mistakenly believe their assets are low risk when in fact they have become "more dangerous". In an investment update for April, Ruffer, who founded the firm in 1994, described a "conventionally diversified" portfolio as one with a mix of fixed income, equities and alternatives.  He said the risk of holding these assets had increased recently although their perceived volatility of holding them had reduced.  "For equities, financial engineering has made earnings more leveraged (think ...