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

JohnRo

I'm beginning to think the 'patient' bit is a marketing ploy. Don't forget Woodford's stated aim for WPCT (last I looked) is to return +10% yoy

He has one hell of a magic trick to perform.

A_T

Sue58 wrote: »

Yes, most of the global IT’s were down between 3-3.5% on Friday and SMT is down 4.5% including close of business today so Fundsmith at 1.7% is good and looking quite defensive in these type of downturns.

Global index trackers were down 2% so Fundsmith fared a little better. LTGE was only down 1.4%.

Johnnyboy11

JohnRo wrote: »

I'm beginning to think the 'patient' bit is a marketing ploy. Don't forget Woodford's stated aim for WPCT (last I looked) is to return +10% yoy

He has one hell of a magic trick to perform.

Target: 100*1.10^4 = 146.4
Actual: 77.6


That's a 100% underperformance, Doh!

fun4everyone

talexuser wrote: »

The "Patient" bit obviously means longer than 4 years!

You know what I have to disagree with this. The fund is called ""Woodford Patient Capital Trust" yet there is absolutely nothing "patient" with the way he treated investors money. It was immediately thrown into all sorts of crap like Northwest Bio and the returns matched the level of due dilligence that was done.

When he accuses investors of not being "patient" he should look in the mirror, absolutely no patience has been exercised with investors money by him in that trust.

short_butt_sweet

it's called the Woodford Patient Capital Trust, not the Patient Woodford Capital Trust! ... i.e. it's the capital that's supposed to be patient.

though perhaps he should have called it Patient Capital Trusts Woodford

fun4everyone

short_butt_sweet wrote: »

it's called the Woodford Patient Capital Trust, not the Patient Woodford Capital Trust! ... i.e. it's the capital that's supposed to be patient.

though perhaps he should have called it Patient Capital Trusts Woodford

Is it really, so it has absolutely no bearing on how he should also be behaving with the capital? It might just be me, but imo he should have shown patience in choosing the investments also.

Presumably then its ok for "Woodford Equity Income" to have a huge % of stocks that.......don't pay any income. That fund actually got kicked out of the equity income sector and the name is now a misrepresentation.

short_butt_sweet

more seriously: you need to read the prospectus (or other documents) describing how the funds are supposed to be run, if you want to assess whether he's done what he said he'd do. (this is something i haven't done.) you can't infer it all from the names.

bowlhead99

His problem is that investors wanted to give him more than £800 million to deploy into a fund which was initially pitched at being a £200m investment vehicle.

Of the £200m, the strategy was to have half of it in UK microcap/ nanocap including venture capital, a quarter or so in UK fledgling /microcap to small cap, and a quarter to be regular medium /large UK for liquidity. On the fundraising trail it became clear that they would easily raise £400m rather than anywhere near close to the minimum and they raised the cap of what they would take.

At £200m you can more easily find opportunities in the microcap space to fill a portion of the portfolio, than when you need to deploy much closer to a billion in total. The problem with 'raising too much' was mentioned in the thread at the time.

https://forums.moneysavingexpert.com/discussion/comment/68145575#Comment_68145575

fun4everyone

short_butt_sweet wrote: »

more seriously: you need to read the prospectus (or other documents) describing how the funds are supposed to be run, if you want to assess whether he's done what he said he'd do. (this is something i haven't done.) you can't infer it all from the names.

Which anyone sensible does for any investment they make - and also negates the accusation investors should be "patient" with WPCT because that's whats in the name.

My opinion : If he wants to accuse investors of not being patient, he should have practiced what he is preaching with investors money.

talexuser

Equity Income was in the Telegraph's 25 favourite funds list but has now been relegated out to be replaced by a better alternative - Woodford Income Focus!