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Woodford Concerns
Comments
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ffacoffipawb wrote: »So 119% invested.
Gearing or poor maths?
Gearing, as described in the earlier linked report from which the quote was taken.0 -
When (IF) the fund opens again and say only 50% (or any other figure) want out. How do you make sure you are at the front of the queue?0
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When (IF) the fund opens again and say only 50% (or any other figure) want out. How do you make sure you are at the front of the queue?
Its most likely they will apply a mechanism to dissuade sellers.
Might be a premium to sell, thats what REITs did a few years back.Gradually lowered over time.
Or might be a maximum amount you can sell per holding.
Their plan/hope will be that the mechanism means they dont run into liquidity problems.
However, if say 50% wish to sell despite the dissuasion, thats going to be close to impossible.
A second gating would be very embarrassing though so i thought he wouldnt risk that but as i type this, what occurs to me is that Woodford might do this precisely so he can blame panicking investors for being forced to shutter the fund rather than it being his decision.
Yep, I can see that happening. He's already blamed them for not being patient enough with WPCTs list of failing investments so why not. That way its not about him and his catastrophic investment records, "it would have come good if only investors had understood"0 -
They got it wrong. 79% of GAV is in unquoteds. That includes the approx £100million overdraft. If you only take net asset value the percentage of unquoteds is significantly higherThey say:
we calculate that as a percentage of NAV 79% is in unquoteds, 23% in "quoteds with no trading" and 17% is in quoted companies
Wow. I had no idea. Another misleading name, he should have just called it Private Equity.poppy100 -
Isn't it you that got it wrong?
They got it wrong. 79% of GAV is in unquoteds. That includes the approx £100million overdraft. If you only take net asset value the percentage of unquoteds is significantly higherThey say:
we calculate that as a percentage of NAV 79% is in unquoteds, 23% in "quoteds with no trading" and 17% is in quoted companies
Because their "...we calculate that..." is telling you that it's already the result of a calculation to convert % of GAV (66% of which is unquoted, 20% quoted with no trading, 14% regular quoted, total 100% of portfolio) to an approx % of NAV (79, 23, 17, with roundings, total 119% of NAV, while borrowings are -19% of NAV)0 -
The sharp movement in the pound over the past two days is hitting the global companies which benefited from the depreciating currency. The likes of Diageo, Unilever, Diageo, Reckitt, GSK, etc. are all down over 2%. The improving sentiment towards a US-China trade truce also not helping, though how many times have we been whipsawed by that.
I think it's going to be another tough month for the Terry Smith, Nick Train-style investors. Not that either of them claims to be a man for all markets, of course.
It is interesting to wonder if what Woodford was waiting for might finally be happening. A look at today's FTSE risers paints a prettier picture for him today.
Perhaps a more pressing question might be whether it matters now, given the reputational hit and the outflows of the non-gated assets. You can be right eventually but have it come too late.This is everybody's fault but mine.0 -
The sharp movement in the pound over the past two days is hitting the global companies which benefited from the depreciating currency. The likes of Diageo, Unilever, Diageo, Reckitt, GSK, etc. are all down over 2%. The improving sentiment towards a US-China trade truce also not helping, though how many times have we been whipsawed by that.
I think it's going to be another tough month for the Terry Smith, Nick Train-style investors. Not that either of them claims to be a man for all markets, of course.
It is interesting to wonder if what Woodford was waiting for might finally be happening. A look at today's FTSE risers paints a prettier picture for him today.
Woodford isn't waiting for the Pound to rise. Woodford is waiting for the disastrous selection of failing/failed companies he bought to come good.Perhaps a more pressing question might be whether it matters now, given the reputational hit and the outflows of the non-gated assets. You can be right eventually but have it come too late.
If "being right eventually" consists of the pound rising by 2% in a few days perhaps you can inform us what colour the sky is on your planet.0 -
I think it's going to be another tough month for the Terry Smith, Nick Train-style investors. Not that either of them claims to be a man for all markets, of course.
Nick Train is bemoaning holding an underperforming Pearson in all their funds for so long. Around a 20% fall in the share price since last months profit warning.0 -
Woodford is not a play on the strength of the pound but on his opinion that UK companies are under recognised and some of them have unnecessarily low valuations.AnotherJoe wrote: »Woodford isn't waiting for the Pound to rise. Woodford is waiting for the disastrous selection of failing/failed companies he bought to come good.
If "being right eventually" consists of the pound rising by 2% in a few days perhaps you can inform us what colour the sky is on your planet.
Following last night's pointer to a potential less-hard Brexit than feared, not only did sterling strengthen by a couple of percent as mentioned, but a broad swathe of UK-focused businesses have decent share price rises. For example in my portfolio tracker I see Tesco and WHSmith up 6.6% today, Syncona up 6% and Lloyds is close to double that (as in a favourable Brexit scenario, consumers and businesses would be more confident and interest rates are at lower risk of being cut further).
RBS are currently leading the FTSE risers with about 15% and lots of UK- exposed businesses (Persimmon, Intu, Kingfisher etc) have double digit percentages.
These swings are a bigger than a couple of hundred bps on the FX rate.
FWIW, WPCT has not moved much. Having bought in the mid 60p range, and not done any 'averaging down' since then, I am a buyer today at 37p.0
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