Woodford Equity Income Fund Suspends Trading

[ADrunkenMarcus]

It's wind up time.

https://www.bbc.co.uk/news/business-50052945

[nmdhqbc]

More details...

https://woodford.linkfundsolutions.co.u ... e-fund.pdf

[toofast2live]

Link not working.

[Mike88]

Patient Capital is probably next.

[JoyofBricks8]

WPCT down 7% today.

Presumably ex-Woodford Equity Income will necessarily be forced sellers of their WPCT when they liquidate the fund.

If WPCT were to attempt to wind up simultaneously what would their share price be?

I would want it to be sub 20p before risking getting involved. Too much on that NAV is vaporware.

[dspp]

These links may work in descending order:

https://woodford.linkfundsolutions.co.uk/

https://woodford.linkfundsolutions.co.u ... nications/

https://woodford.linkfundsolutions.co.u ... come-fund/

https://woodford.linkfundsolutions.co.u ... e-fund.pdf

My opinion is that high return corresponds with high risk, furthermore the picks were well off the efficient frontier, and in an area he was unfamiliar with, and high fees were being charged.

Provided the taxpayer does not step in to pick up the bill then hopefully it is a salutary lesson for the general public.

- dspp

[Dod101]

That is surely the end of Woodford. How the mighty have fallen.

Apparently LF Equity Income Fund holds 9% of Patient Capital, putting even more pressure on its share price. (The Woodford name has been dropped from the Fund) No more fees for Woodford from it. Surely only a matter of time before the IT goes in to run off and liquidation as well.

The whole edifice was built on sand and hubris.

Dod

PS More pressure on Imperial Tobacco price?

[Alaric]

Surely only a matter of time before the IT goes in to run off and liquidation as well.

The IT share price is now down to 34p. Presumably that's a considerable discount to published NAV. It's a really large IT to liquidate though and if it holds the same unquoted and rarely traded stuff as the OEIC, the published NAV is speculation.

[monabri]

PS More pressure on Imperial Tobacco price?

That was one of my first thoughts - and not just Imperial.

https://citywire.co.uk/funds-insider/ne ... e/a1275004

His recent buys include

Legal & General
RBS
BATS
LLOYDS
IAG (or ICAG as the article refers to IAG !)
BT

[Dod101]

Surely only a matter of time before the IT goes in to run off and liquidation as well.

The IT share price is now down to 34p. Presumably that's a considerable discount to published NAV. It's a really large IT to liquidate though and if it holds the same unquoted and rarely traded stuff as the OEIC, the published NAV is speculation.

As you say the actual NAV must be an unknown, especially as the Fund is now in liquidation. Woodford has been extremely dangerous for all of us whether investors in his funds or not. I bet the papers will be full of this tomorrow asking for an enquiry etc etc and once again noting how useless the regulators are, although I am not sure what they could have done in the case of Woodford except of course come down much harder on him with his antics re unquoted shares. They seem to have been his downfall. Presumably no one will touch him with a bargepole now so what is left of his empire is likely to disappear as well.

I must say the directors of Patient Capital have not come out of it very well but then they look like placemen/women of Woodford and certainly not experienced IT Directors.

Dod

[jonesa1]

That is surely the end of Woodford. How the mighty have fallen.

Professional reputation in tatters, but not a bad outcome for him personally, lose a mountain of cash for his investors while earning loads of cash for himself. Sympathy in very short supply and as mentioned

Provided the taxpayer does not step in to pick up the bill then hopefully it is a salutary lesson for the general public.

Andrew

[Howyoudoin]

Does anyone know what point there is of renaming the fund if it's being shut down?

HYD

[Dod101]

Including Woodford in the name and in the name of the Patient Trust was wrong in the first place as he was only ever the investment manager. It was presumably nearly all OPM he was putting in to those funds, not his own. However, such is the gullibility of the general public that they would have thought that the name conferred some sort of respectability and backing to the funds. Gullibility may be the wrong expression because many of them were no doubt simply honourable but ignorant and firms like Hargreaves Lansdowne are probably more to blame. After all they were actively promoting Woodford on their 'best buy' lists. These lists ought to be banned.

Is that £500 million that RVF mentions accurate? Yet another scandal in the making?

Dod

[Dod101]

"When you buy a Wealth 50 fund you can be confident it's passed rigorous tests.

We look for:
A distinguished career - we analyse the manager's entire career, so we know their strengths.
A fantastic track record - a fund manager needs a history of good performance across different market conditions.
A robust process - we meet managers a number of times to get a deep understanding of how they invest, and at least once a year when they're on the list."

And then we get the coin out!

This was HL's blurb on the wonderful Woodford. They surely deserve all the opprobrium we can muster. Thanks monabri, very helpful.

Dod

[Dod101]

Thanks RVF. I too am watching from the sidelines.

Dod

[paulnumbers]

Thanks RVF. I too am watching from the sidelines.

Dod

I’ve been using the app/broker Freetrade to dabble in Patient Capital. £50 here, £100 there, it has been quite fun. (the only costs are stamp duty) Without checking, I think my first purchase was at roughly the price of NAV now.

[Bagger46]

Thanks RVF. I too am watching from the sidelines.

Dod

I’ve been using the app/broker Freetrade to dabble in Patient Capital. £50 here, £100 there, it has been quite fun. (the only costs are stamp duty) Without checking, I think my first purchase was at roughly the price of NAV now.

I have been watching too, like many of us, not being involved as an investor at all.

But if the WPCT share price dips to around the 30p mark on further bad news, I will very likely go in heavy, because if this IT is taken over or wound up, it will be at or near 'real' NAV, which I don't think will be far from the 45p mark. This would be an 18 months max type punt.

I have had good results in the past, and of course the odd near disaster(eased by putting in a suitable stop loss), with bottom fishing in few windup situations.

Bagger

[Dod101]

The thing is with these situations as you say, you either have to go in heavy or not at all. I am passed the stage of taking positions in this sort of situation but I certainly wish those who do good luck! That is what makes a market.

Dod

[monabri]

Announced at 18:17 hours

https://www.londonstockexchange.com/exc ... ast3Months



"The Board of Woodford Patient Capital Trust plc (the "Company" or "WPCT") announces that, in light of recent events, Woodford Investment Management Limited ("WIM") has today served notice of termination in relation to its role as Portfolio Manager.

During its three-month notice period, WIM has committed to work collaboratively with the Board and its advisers throughout this transition period in order to protect the interests of shareholders.

The Board is in advanced discussions in relation to the ongoing management of the Company's portfolio and expects to be in a position to announce details of the new management arrangements shortly.

note

"Woodford Investment Management Limited ("WIM") has today served notice of termination in relation to its role as Portfolio Manager"

Jumped before being pushed by the look of it.

[paulnumbers]

The thing is with these situations as you say, you either have to go in heavy or not at all.

Yeah there's a certain sense in that. My confidence levels are not that high, and I really just wanted to put something on the table, to see how I felt about it! I've been content with a few nibbles, and a learning experience. Currently down ~12%