Woodford Concerns

AnotherJoe

Prism wrote: »

I am of the opinion that most who lost money through Woodfords funds would accept full responsibility for it. Some won't of course but they are wrong. For one thing, Woodford published every single holding in every fund on the website. It was completely transparent. Nobody can really complain that they thought they had some sort of 'safe hands' reliable income fund rather than the nuts small cap, unquoted illiquid fund that they actually had.

To be fair to them, I think there's a large demographic of people who are clueless about all that stuff and leave it to their FAs to guide them.
Those who need opprobrium are those FAs who certainly should have seen and understood that and exited their clients from Woodfords funds . I would go so far as to say that any IFA who didn't get their clients out by end last year is highly suspect and you should move. It's not as if its come out of the blue there have been so many warning signs.

Malthusian

AnotherJoe wrote: »

And thats what NW seems to have turned into after being a great one. It may even have been that he's always been an awful fund manager but this was masked when he was at Invesco since the managers there wouldn't let him buy companies that were too risky or were out and out scams.

A shame that the geniuses behind the scenes who successfully deterred Neil Woodford from investing in cold fusion scams in the 1990s and convinced him to invest in tobacco companies instead haven't started their own fund.

Ciprico

I'm surprised P2P hasn't cropped up in this thread, wasn't he heavily involved in Funding Circle and subsequent debacle....

iglad

I was bit shocked to see that the Woodford Investment Trust was the 5th most popular Investment trust which people put their money into in August. I know it's cheap and looks like a bargain but come on now people.

https://www.moneyobserver.com/news/top-10-most-popular-investment-trusts-august-2019

coyrls

iglad wrote: »

I was bit shocked to see that the Woodford Investment Trust was the 5th most popular Investment trust which people put their money into in August. I know it's cheap and looks like a bargain but come on now people.

https://www.moneyobserver.com/news/top-10-most-popular-investment-trusts-august-2019

For every seller there has to be a buyer. The volume is no doubt being driven by sales, which in turn is driving the price down.

AnotherJoe

You cant even see what's in it now, it might consist of junk from his other investments he's had to sell.

bowlhead99

iglad wrote: »

I was bit shocked to see that the Woodford Investment Trust was the 5th most popular Investment trust which people put their money into in August. I know it's cheap and looks like a bargain but come on now people.

Today the broader FTSE All Share is flat (plus or minus 0.1%), while WPCT is up 1.97%.

If you are one of those people who had bought a UK index tracker at a higher level and is annoyed by seeing the loss in red on your screen, you could sell out and open a position in WPCT; as clearly of the two it's going up faster now. Over 2% since Monday 8am, while FTSE AllShare is up less than 1% in that time.

Although that does perhaps indicate the inadequacy of using a short cherry-picked timescale to make a point, we know that decision making for some retail investors is driven by simplistic considerations, as we've seen on other threads.

I note that WPCT has announced some negotiation of new arrangements in relation to its borrowing facility today: some greater flexibility around its borrowing base and a small tick up to Libor+1.50 from Libor+1.35%

iglad

bowlhead99 wrote: »

Today the broader FTSE All Share is flat (plus or minus 0.1%), while WPCT is up 1.97%.

If you are one of those people who had bought a UK index tracker at a higher level and is annoyed by seeing the loss in red on your screen, you could sell out and open a position in WPCT; as clearly of the two it's going up faster now. Over 2% since Monday 8am, while FTSE AllShare is up less than 1% in that time.

Although that does perhaps indicate the inadequacy of using a short cherry-picked timescale to make a point, we know that decision making for some retail investors is driven by simplistic considerations, as we've seen on other threads.

I note that WPCT has announced some negotiation of new arrangements in relation to its borrowing facility today: some greater flexibility around its borrowing base and a small tick up to Libor+1.50 from Libor+1.35%

"Past performance is no guarantee of future results." ;-)

WPCT up 0.60p (1.41%) today

1Yr - 46.21

3yr -54.56

discount 41.75%

Thrugelmir

iglad wrote: »

discount 41.75%

What metric do you use to determine whether the fund you are currently buying offers value. Or do you follow the herd?

iglad

Thrugelmir wrote: »

What metric do you use to determine whether the fund you are currently buying offers value. Or do you follow the herd?

Oh dear my little joke about past performance has been taken too seriously? oops!!