Woodford Concerns

londoninvestor

pioruns wrote: »

https://www.zerohedge.com/news/2019-06-03/it-begins-multi-billion-hedge-fund-blocks-redemptions


Wow!

Well, but:
a) it isn't a hedge fund!
b) broader contagion doesn't seem too likely - the issues are very much about Woodford's strategy than the market more broadly

talexuser

If it is true the suspension was triggered by Kent County Council asking to withdraw their £250 million - do you think it is wise for your council to invest so much money in one active fund?

Aretnap

talexuser wrote: »

If it is true the suspension was triggered by Kent County Council asking to withdraw their £250 million - do you think it is wise for your council to invest so much money in one active fund?

Given that as of their last annual report Kent's pension fund had nearly £6billion of assets under management, investing about 4% of it in a single active fund doesn't strike me as inherently outrageous.

talexuser

Pretty poor judgment to wait until now to jump though when it became obvious at just over 3 years his 5 years figure could never recover. They're hardly DIY investors - unless have HL as advisors!

Aretnap

talexuser wrote: »

Pretty poor judgment to wait until now to jump though when it became obvious at just over 3 years his 5 years figure could never recover. They're hardly DIY investors - unless have HL as advisors!

Well, whether that particular fund was a good choice is a separate question to whether it's wise to put so much into a single fund. Although as they're not DIY investors, I would not expect them to fall for some version of the sunk costs fallacy by bailing out after 3 years just because it meant that the 5 year figures were now bound to be poor.

bowlhead99

Voyager2002 wrote: »

Surely the suspension does not affect the prices of the shares in which this fund invests, and so they could still go up (or down).

I hope this will not affect his Patient Capital trust.

I hope the lack of confidence will make the Patient Capital trust cheaper to buy vs the assets it holds.

antrobus

bowlhead99 wrote: »

I hope the lack of confidence will make the Patient Capital trust cheaper to buy vs the assets it holds.

Trading at a discount of 14.98% it seems.
https://www.hl.co.uk/shares/shares-search-results/w/woodford-patient-capital-trust-ord-gbp0.01

bertpalmer

I've got quite a lot of money in this fund - is it gone?

AnotherJoe

bertpalmer wrote: »

I've got quite a lot of money in this fund - is it gone?

No but you will likely get back a fraction after some time has elapsed.
In the case of property funds, where a similar exit ban was introduced to most, they started reintroducing them to the market by adding a very high exit fee, and then gradually lowing that over time as property prices stabilised. And of course eventually property prices rose and so the funds became fully viable again and traded normally.

So they may do well something like that here.

From what I've read, and someone may be able to chip in, perhaps 25-50% of the value is still there.
This all certainly makes HL look like a prize bunch of chumps.

quirkydeptless

dividendhero wrote: »

Not a word of this on HL's or woodfords website :mad:

https://www.hl.co.uk/news/articles/woodford-equity-income-all-dealing-suspended-following-redemption-concerns

Woodford Income Focus has also been removed from the Wealth 50, but is still trading.