Woodford Concerns

talexuser

Guardian reports on possible trouble at HL AGM due to Woodford.

https://www.theguardian.com/business/2019/oct/04/hargreaves-lansdown-agm-neil-woodford-fund-shares

Borisgraph today reports the gating could well last another 6 months after December to guarantee enough liquidity for the forthcoming cash in when it opens again (if ever!).

bowlhead99

AnotherJoe wrote: »

Fair points re holding investments so just the question why he bought a load that have gone down in value since he bought them. D

Perhaps he didn't expect that they would go down very much when he bought them.

AnotherJoe

bowlhead99 wrote: »

Perhaps he didn't expect that they would go down very much when he bought them.

Why ever not given his history of purchases ?

Or, being serious, was he not aware a BA strike was on the cards, did his team of due diligence experts not warn him that a profit warning was coming at Imperial Brands, etc?

Scarpacci

I just don't understand the logic in Woodford's stated viewed that the global economy isn't as strong as equity markets imply and the investments he's recently made in two British banks, an airline and an insurer.

The former view certainly looks a reasonable proposition and one he might have been ahead of the curve on, but how that would convince someone to buy cyclical companies like that is beyond me.

Even ignoring Brexit and its potential effects on the UK economy, as the old cliche goes: when the world catches a cold, Britain sneezes. I can't see any reason to expect the UK cyclical companies would hold up any better in the event of a worldwide downturn.

iglad

cogito wrote: »

It appears that WEIF has now lost 19.4% of investors' money since the fund was gated, placing it at 2759 of 2760 UK based funds over the period.

They are lucky as the Investment trust he runs has lost almost 60% over the past 3 years.

Brian65

iglad wrote: »

They are lucky as the Investment trust he runs has lost almost 60% over the past 3 years.

More than rather than almost 60% when compared to a world tracker

Thrugelmir

AnotherJoe wrote: »

Fair points re holding investments so just the question why he bought a load that have gone down in value since he bought them. D

Do you know what price was paid for the shares?

Thrugelmir

Scarpacci wrote: »

I can't see any reason to expect the UK cyclical companies would hold up any better in the event of a worldwide downturn.

Banks and insurers are hardly cyclical. If anything rather boring.

AnotherJoe

Thrugelmir wrote: »

Do you know what price was paid for the shares?

I do. More than the price today, since they were bought between March and end June and over that time period they were higher than they are today. Unless Woodford got "mates rates", though the last time he did a transaction publicly he actually paid more than market price so I wouldnt count on that.

AnotherJoe

I see WPCT is up today. BH probabiy doubling down