A damper assembly comprises a main tube extending along a center axis defining a fluid chamber. A main piston is located in the main tube dividing the fluid chamber into a compression chamber and a rebound chamber. A piston rod extends into the main tube and coupled to the main piston. The piston rod defines an annular chamber extending along the center axis. A slidable partition is located in the annular chamber dividing the annular chamber into a magnetorheological chamber and a compensation chamber. A secondary piston is slidably disposed in the magnetorheological chamber dividing the magnetorheological chamber into a magnetorheological compression chamber and a magnetorheological rebound chamber. A secondary piston rod sealingly and slidably guided through the main piston and couples to the main tube for moving the secondary piston axially in the magnetorheological chamber.