Woodford Equity Income - I really don't get today's drop?

nrsql

He also says his funds are on the brink of a recovery but it might not happen before they are forced to close.
A bit like timing the market but also similar to Michael Burry in the Big Short but also what scams say.

Sounding like a punt rather than something to be an appreciable part of a portfolio.
Maybe of more concern is him not noticing that companies have serious problems (gambling?).

fun4everyone

25_Years_On wrote: »

The link looks OK on the page but the actual links you've made have missing colons after the https. So this should work.

https://citywire.co.uk/investment-trust-insider/news/woodford-needs-hargreaves-lansdown-now-more-than-ever/a1208124

the actual links inside my post when I check by editing it have colons as well, some sort of weird bug causing them to vanish.

OldMusicGuy

nrsql wrote: »

He also says his funds are on the brink of a recovery but it might not happen before they are forced to close.
A bit like timing the market but also similar to Michael Burry in the Big Short but also what scams say.

Sounding like a punt rather than something to be an appreciable part of a portfolio.
Maybe of more concern is him not noticing that companies have serious problems (gambling?).

I bailed out of the income focus fund early last year after some of his stock picks. It was supposed to be a more blue chip income fund but he had too many unlisted and non-blue chip stocks for my liking.

The clincher for me was when he invested in Purple Bricks. I could see that's a business with issues and its revenue model and reporting is dubious. When you start disagreeing with your highly paid stock picker on his choice of stocks, you know it's time to bail.

FWIW Purple Bricks just tanked recently as the chickens are starting to come home to roost.

Johnnyboy11

Well, another 1.74% of his investors gold turned into sand, in a single day, a day that the UK FTSE All Share was up 0.7%. A remarkable achievement.



https://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/l/lf-woodford-equity-income-accumulation

bowlhead99

Johnnyboy11 wrote: »

Well, another 1.74% of his investors gold turned into sand, in a single day, a day that the UK FTSE All Share was up 0.7%. A remarkable achievement.

It's not an apples to apples comparison, as has already been explained.

The Woodford fund is valued at 12.00. Yesterday the FTSE only went up 0.3% before 12.00; the rest of its increase (above 7315) only happened in the afternoon. And in fact the FTSE had fallen in the afternoon of the previous day, as had been up at the 7328 level at noon on Wednesday.

So in the period you are reviewing from noon to noon, FTSE fell 0.2% and Woodford fell 1.74%.

So, while the adjusted one day snapshot shows Woodford falling more, it is not the same as saying FTSE is rising and Woodford has 'remarkably' fallen when markets are rising. Because both are falling.

The obvious point to make is that Woodford's fund is not supposed to move by the same amounts at the same times as a portfolio which follows the weighting of the FTSE100. You don't come on here and moan about the FTSE when it falls behind Woodford for a day.

I didn't see you venting your surprise and being sarcastic about his 'remarkable achievements' when his fund was 15 months old and up over 10% while the 100 was down 10%. Or a year later when he had done 30% since inception and FTSE total return had only done 10% in the same period. You clearly know that he doesn't intend to hold the same company types in the same proportions as the index, which is the whole point of his fund existing. But now it is the Woodford fund that has only done 10% since inception while FTSE's total return is 30%. Que sera, sera.

To save yourself further anguish, either sell it, or stop looking at daily returns.

Johnnyboy11

bowlhead99 wrote: »

...To save yourself further anguish, either sell it, or stop looking at daily returns.

No anguish for me, I reflected on the views expressed in this thread and sold all at 113.6 on 6th Feb. then bought VLS60 at 179 two days later, so 6% the better as of today, and happy with my decision.

bowlhead99

Johnnyboy11 wrote: »

No anguish for me, I reflected on the views expressed in this thread and sold all at 113.6 on 6th Feb. then bought VLS60 at 179 two days later, so 6% the better as of today, and happy with my decision.

Always good to be up rather than down

VLS60 is a totally different type of fund though - Woodford isn't trying to construct an internationally-diversified portfolio of equities and sterling-hedged bond indexes - so who knows whether it will give you the long term result you're looking for. Good luck with it. If you were looking for a generalist global fund investing in a mix of asset classes, picking a specialist fund such as Woodford wasn't really the right place to start...

redux

talexuser wrote: »

I think a lot of Hargreaves customers should be worried about the advice to stick with him while all the while being silent about Fundsmith.

Are their customers sheep? Although I'm an HL customer, I don't take much notice of their recommendations, and I don't act on them at all.

Smith seems to allege something like HL demand a discount in order to recommend his fund, and why should he give one. That might give some hint about how the others are selected, or maybe not, but I'm not much interested in that either.

My HL custom starts from 2 investment trust schemes closing and both suggesting HL as an alternative. Free transfer in, and so far HL has made almost £12 from me for reinvesting 9 dividends in 3 years.

As for Woodford or Smith, I looked at both for an investment about 4 years ago, bought Fundsmith on its own website. No regret, but I still pay enough attention to be a bit bemused at Woodford's recent outbursts, as if he is partly blaming the audience.

Thrugelmir

Johnnyboy11 wrote: »

No anguish for me, I reflected on the views expressed in this thread and sold all at 113.6 on 6th Feb. then bought VLS60 at 179 two days later, so 6% the better as of today, and happy with my decision.

You are part of the market. However small your direct influence. Investors generally move in herds.

Kendall80

We don't often hear about individual investing mistakes so i'll offer up one. Unlike Johnnyboy11 I decided to sick with my allocation to Woodford in my ISA, boys 2 JISAs and my SIPP. It has been the biggest loser in each one by some margin. Fortunately, almost all accompanying funds are up but overall portfolio performance has certainly been impacted. I've finally decided to cut my losses after my March review. Watch it go and surge 20% now.