Got a credit card? use our Credit Card & Finance Calculators
Thanks to Wasron,jfgw,Rhyd6,eyeball08,Wondergirly, for Donating to support the site
Woodford Patient Capital - Why?
Re: Woodford Patient Capital - Why?
Hi, First post
So I'm quite new to this - but thought I'd add why WPCT is 5% of my SIPP at moment.
1/ Like others it's a way of getting exposure to non-stock asset classes in early stage - I see this as a future potential outperformer, likely to do NIL for a year or more.
2/ I will only buy in at 8-10% discount to NAV.
Brought in when NAV was 85p or so, at an average of 79p. (ie decent discount). It's made me a small sum since and NAV is currently around 97p. However NAV on "unquoted" assets is really a worry sometimes - hence needing a discount for me to buy in.
The other thing not mentioned in this thread is the actual costs though - the overall management costs will be low until Woodford manages 10% a year gains. Therefore, I see this as a "lower" risk than many other assets in this class due to this "non-fee" arrangement until performance achieved.
Good luck to any of us also in this trust!
So I'm quite new to this - but thought I'd add why WPCT is 5% of my SIPP at moment.
1/ Like others it's a way of getting exposure to non-stock asset classes in early stage - I see this as a future potential outperformer, likely to do NIL for a year or more.
2/ I will only buy in at 8-10% discount to NAV.
Brought in when NAV was 85p or so, at an average of 79p. (ie decent discount). It's made me a small sum since and NAV is currently around 97p. However NAV on "unquoted" assets is really a worry sometimes - hence needing a discount for me to buy in.
The other thing not mentioned in this thread is the actual costs though - the overall management costs will be low until Woodford manages 10% a year gains. Therefore, I see this as a "lower" risk than many other assets in this class due to this "non-fee" arrangement until performance achieved.
Good luck to any of us also in this trust!
-
- Lemon Slice
- Posts: 767
- Joined: November 4th, 2016, 11:51 am
- Has thanked: 71 times
- Been thanked: 147 times
-
- Lemon Slice
- Posts: 425
- Joined: October 12th, 2018, 5:01 pm
- Has thanked: 46 times
- Been thanked: 407 times
Re: Woodford Patient Capital - Why?
OhNoNotimAgain wrote:Woodford's even more Patient Capital
https://www.fool.co.uk/investing/2019/0 ... s-25-drop/
Thankfully it hardly even touched the dial on the NAV as only 2.3% or so of its portfolio
-
- Lemon Slice
- Posts: 767
- Joined: November 4th, 2016, 11:51 am
- Has thanked: 71 times
- Been thanked: 147 times
Re: Woodford Patient Capital - Why?
DavidM13 wrote:OhNoNotimAgain wrote:Woodford's even more Patient Capital
https://www.fool.co.uk/investing/2019/0 ... s-25-drop/
Thankfully it hardly even touched the dial on the NAV as only 2.3% or so of its portfolio
That's a huge position, the equivalent of BATS in FTAS tracker fund.
-
- Lemon Slice
- Posts: 425
- Joined: October 12th, 2018, 5:01 pm
- Has thanked: 46 times
- Been thanked: 407 times
Re: Woodford Patient Capital - Why?
OhNoNotimAgain wrote:DavidM13 wrote:OhNoNotimAgain wrote:Woodford's even more Patient Capital
https://www.fool.co.uk/investing/2019/0 ... s-25-drop/
Thankfully it hardly even touched the dial on the NAV as only 2.3% or so of its portfolio
That's a huge position, the equivalent of BATS in FTAS tracker fund.
It was massive headline news but the NAV is only down 0.44% off the back of it (and purplebricks bounced back 7% today). I really do not see it as a big deal personally.
-
- Lemon Slice
- Posts: 767
- Joined: November 4th, 2016, 11:51 am
- Has thanked: 71 times
- Been thanked: 147 times
Re: Woodford Patient Capital - Why?
DavidM13 wrote:OhNoNotimAgain wrote:DavidM13 wrote:
Thankfully it hardly even touched the dial on the NAV as only 2.3% or so of its portfolio
That's a huge position, the equivalent of BATS in FTAS tracker fund.
It was massive headline news but the NAV is only down 0.44% off the back of it (and purplebricks bounced back 7% today). I really do not see it as a big deal personally.
After a 25% drop shares need to recover by 50% just to get back to where they were. But as the business prospects have changed the valuation will also be different.
-
- Lemon Slice
- Posts: 425
- Joined: October 12th, 2018, 5:01 pm
- Has thanked: 46 times
- Been thanked: 407 times
Re: Woodford Patient Capital - Why?
Am I being dense here?
Surely if a stock drops 25% then to get back to even it only needs to rise 33%?
Ie. If 100p drops to 75p then based on your example of needing to go up 50% then it would be on something like 112.5p. I feel I have that right but do tell me if my logic or maths are flawed
Surely if a stock drops 25% then to get back to even it only needs to rise 33%?
Ie. If 100p drops to 75p then based on your example of needing to go up 50% then it would be on something like 112.5p. I feel I have that right but do tell me if my logic or maths are flawed
-
- Lemon Slice
- Posts: 494
- Joined: November 4th, 2016, 2:24 pm
- Has thanked: 2 times
- Been thanked: 98 times
Re: Woodford Patient Capital - Why?
DavidM13 wrote:Am I being dense here?
Surely if a stock drops 25% then to get back to even it only needs to rise 33%?
Ie. If 100p drops to 75p then based on your example of needing to go up 50% then it would be on something like 112.5p. I feel I have that right but do tell me if my logic or maths are flawed
Correct.
-
- Lemon Half
- Posts: 9129
- Joined: November 4th, 2016, 1:16 pm
- Has thanked: 4140 times
- Been thanked: 10032 times
Re: Woodford Patient Capital - Why?
OhNoNotimAgain wrote:
After a 25% drop, shares need to recover by 50% just to get back to where they were.
I think we're going to have to ask you to show your working on that one.....
And from a fund manager too.....
Itsallaguess
-
- Lemon Slice
- Posts: 767
- Joined: November 4th, 2016, 11:51 am
- Has thanked: 71 times
- Been thanked: 147 times
Re: Woodford Patient Capital - Why?
DavidM13 wrote:Am I being dense here?
Surely if a stock drops 25% then to get back to even it only needs to rise 33%?
Ie. If 100p drops to 75p then based on your example of needing to go up 50% then it would be on something like 112.5p. I feel I have that right but do tell me if my logic or maths are flawed
Correct, my schoolboy error, was thinking of the old down 50% then up by 100%.
Return to “Investment Trusts and Unit Trusts”
Who is online
Users browsing this forum: No registered users and 28 guests