Wellcome Trust is increasing its cash pile as stock market jitters increase

Tuesday 13 January 2026 18:28
| Updated:

Tuesday 13 January 2026 18:29

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Britain’s largest charities have raised more than £3.7 billion in cash in a bid to protect their endowments from an impending financial correction and take advantage of lower-priced stock market opportunities that may be generated by falling prices.

The Wellcome Trust, a medical charity that manages almost £40 billion, revealed in its annual report that it had reorganized its portfolio so it could “step into market dislocations” that may arise in the coming months.

“Public equity markets at least appear to be fully valued by any metric, and expensive in a long-term historical context. This is especially true in the US, but other markets are also experiencing multiple valuation increases,” the report said.

“The prospect of real returns for listed shares in the five to 10 year horizon is definitely weaker than returns since the global financial crisis,” he added. “At some point, this trend will reverse . . . however, determining that inflection point is impossible.”

Wellcome Trust bucks high risk appetite

Cash now accounts for about 8.9 percent of the trust fund – one of the world’s most endowed charities – much higher than the historical average of between three and five percent. z

The decision runs counter to the prevailing risk-on sentiment among asset managers that has helped take nearly all of the world’s major stock markets to all-time highs in recent months.

This month, the FTSE 100 surpassed 10,000 points for the first time in its history, while the S&P 500 – New York’s blue-chip index – hit a record on Monday even after Donald Trump’s latest attack on the Federal Reserve sent gold up more than three percent.

Bank of America’s latest survey of fund managers revealed the average cash position fell to just 3.3 percent, the lowest in history despite signs the AI-driven stock market boom is running out of steam.

But Berkshire Hathaway – an investment giant renowned for its long-term returns and where Wellcome invests – has also built a $377.5 billion cash position, citing concerns about frothy valuations and rising yields from higher interest rates.

Fabian Thehos, co-chief investment officer at Wellcome Trust, said of the huge cash pile built by former Berkshire Hathaway manager Warren Buffet: “We’re definitely on the good side of this. Our natural inclination is probably to be a bit of a contrarian.”