Woodford Concerns

coyrls

Reaper wrote: »

But isn't that most likely? He has to sell enough now to get below 10% limit and the market knows it. Potential buyers of unquoted stocks know he is a forced seller so it will be very hard to find a buyer willing to pay a fair price for them. However selling his stake in WPCT is much easier as it is a listed share.

I would expect him to sell a bunch now and hold some more ready to sell ready for when he re-opens the fund and the inevitable further wave of withdrawals takes place. I don't expect him to end up with much.

I don't think that WPCT would be included in the 10% limit because it is tradeable on a recognised exchange.

masonic

IanManc wrote: »

How was he managing the fund in the best interests of investors when he allegedly paid above market price for shares in another fund he managed? I put this in Post 335 but no one commented:

redux wrote: »

Besides that, the most surprising aspect I've seen on this thread is the fund allegedly having acquired shares in Patient Capital at full asset value, instead of at an open market (i.e. discounted to NAV) price.

I wish they would have done that because it would have hoovered up all available WPCT shares and driven the trust to a premium and probably would have taken a couple of weeks or more before enough shares could be found. Whereupon all those shares bought at a premium from investors like me would drop back to a discount, essentially transferring all the losses made since launch from WPCT investors to WEIF investors

masonic

coyrls wrote: »

I don't think that WPCT would be included in the 10% limit because it is tradeable on a recognised exchange.

That is my understanding (clearly it wasn't in the original equity swap with WPCT, otherwise that swap would have been pointless). A plausible route to exit all of these remaining unquoted positions would be via a similar equity swap with WPCT or another tradeable fund.

AnotherJoe

dividendhero wrote: »

Theoretically the Sun's not hot enough to induce fusion, but something quantum tunnelling enables the coulomb barrier to be overcome and the sun to shine

There's no doubt that Industrial Heat have not achieved such a miracle, but they did manage to sucker Woodford

FTFY extra text

itwasntme001

I just calculated - i sold out of the woodford income fund with a £1k loss. Had i kept it and being unable to sell anymore, i would be making a loss of around 6k!!!


When i sold out last year, i took 15% of the proceeds and invested in a stock which has double since. More then made up for the loss!!

quirkydeptless

I was in Woodford Equity Income a couple of years ago. Sold out (with a small profit) after the following thought struck me - if this fund is relying on a star manager, what would happen to it if he died?



Well at least Mr Woodford didn't die, only his reputation

fun4everyone

Wow it does continue to get worse as each day passes. If you are in WEIF then The Times is saying you won't getting anything back until Christmas...

https://www.thetimes.co.uk/article/investors-in-neil-woodford-fund-cut-off-from-cash-until-christmas-5nwwlrzt8

Whilst The Telegraph suggests Hargreaves Lansdown's multi manager funds may now have to be gated because of their heavy WEIF allocations..

https://www.telegraph.co.uk/investing/funds/woodford-suspension-could-cause-hargreaves-lansdown-halt-withdrawals/

Nocto

fun4everyone wrote: »

Wow it does continue to get worse as each day passes. If you are in WEIF then The Times is saying you won't getting anything back until Christmas...

https://www.thetimes.co.uk/article/investors-in-neil-woodford-fund-cut-off-from-cash-until-christmas-5nwwlrzt8

Whilst The Telegraph suggests Hargreaves Lansdown's multi manager funds may now have to be gated because of their heavy WEIF allocations..

https://www.telegraph.co.uk/investing/funds/woodford-suspension-could-cause-hargreaves-lansdown-halt-withdrawals/

To be fair that is just journalistic speculation. The media enjoy nothing more than whipping up a good crisis to sell newspapers.

Unfortunately though, if they panic enough people into selling their HL MM funds it could become a self fulfilling prophecy.

dividendhero

fun4everyone wrote: »

Wow it does continue to get worse as each day passes. If you are in WEIF then The Times is saying you won't getting anything back until Christmas...

https://www.thetimes.co.uk/article/investors-in-neil-woodford-fund-cut-off-from-cash-until-christmas-5nwwlrzt8

Whilst The Telegraph suggests Hargreaves Lansdown's multi manager funds may now have to be gated because of their heavy WEIF allocations..

https://www.telegraph.co.uk/investing/funds/woodford-suspension-could-cause-hargreaves-lansdown-halt-withdrawals/

The unquoted assets in the Woodford funds are fairly small in the scheme of things, well under £1bn. HL could have bought these for around £500m and not only would they have nipped the trouble in the bud, they'd probably emerge with a profit and certainly would have a better image than they now have

MK62

fun4everyone wrote: »

Wow it does continue to get worse as each day passes. If you are in WEIF then The Times is saying you won't getting anything back until Christmas...

Probably just speculation by the Times, but if that turns out to be the case, the real story here imho, is WIM continuing to trouser £80k a day in management fees on investor funds they are essentially holding captive......legal perhaps, but ethically a little dodgy I think (but then I suppose finance and ethics are usually strange bedfellows)