Collective Investments

The Vultures are Circling – Woodford, Carpetright et al

With the demise of the Neil Woodford’s empire and the winding up of the Woodford Equity Income Fund, investors are looking for whom to blame – other than themselves of course for investing in his funds. One target is Hargreaves Lansdown (HL.) and other fund platforms who had it on their recommended or “best buy” lists, including long after the fund’s problems were apparent. Now lawyers are only too glad to help in such circumstances and at least two firms have ...

Woodford Fund and Trust News

The good news for investors in the Woodford Patient Capital Trust (WPCT) is that Schroders are taking over management of the portfolio.  The share price promptly jumped upwards on the news (up about 29% at the time of writing), but speculators need to be wary. Although the trust is still at a large discount to the Net Asset Value, I looked at the portfolio yesterday and was not impressed. These are the top ten holdings by value: Rutherford Health, Benevolent AI, Atom ...

Woodford, Buffett Bot and FRC Survey

There was a very good article in the FT on Saturday on the “rise and fall of a rock star fund manager”, i.e. Neil Woodford. Essential reading for those who...

Woodford and Hargreaves Lansdown

To follow up on my previous blog post over the collapse of Woodford Investment Management and how to avoid dud managers, the focus has now turned in the national media upon Hargreaves Lansdown (HL.). Investors who have lost a lot of money, and now won’t be able to get their remaining cash out for some time, are looking for who to blame. Neil Woodford is one of course, but what about investment platforms such HL? The Woodford Equity Income Fund was on ...

Woodford Closing Down and How to Avoid Dud Managers

No sooner had I suggested that Neil Woodford should retire after his management company was fired from looking after the Woodford Equity Income Fund (see my personal blog article here: https://tinyurl.com/yxflsh8c ) than he decided to shut down the company. So that looks like the end of his career as a fund manager. Other funds that the company managed were the Woodford Income Focus Fund which has also been closed to redemptions and the Woodford Patient Capital Trust (WPCT). The latter trust’s ...

Asset Managers With $74 Trillion on Brink of Historic Shakeout

Readers may find this Bloomberg analysis of the asset management industry interesting. It is full of lots of data and interesting charts. It highlights the move towards passive and the high costs of active funds. see https://www.bloomberg.com/graphics/2019-asset-management-in-decline/ Asset Managers With $74 Trillion on Brink of Historic Shakeout By Suzy Waite, Annie Massa and Christopher Cannon 8 August 2019 The industry that gave rise to investing titans Peter Lynch, Bill Miller and Bill Gross is facing an existential crisis. For years, mom-and-pop investors frustrated by high fees ...

Burford Capital, Goals Soccer Centres, Carillion, and Why Numbers Are Not Important

To follow on from my previous comments this morning on Burford Capital (BUR), this is a typical “shorting” attack where the shorter (Muddy Waters) and their supporters make a lot of allegations which investors are unable to verify in any useful time frame. I certainly questioned the accounting approach used by Burford and other litigation finance firms as I commented on it back in June, but disentangling the factual accusations in the Muddy Waters dossier from innuendo and comment is not ...

Bonmarché Update, FCA Grilling over Woodford and Amati AIM VCT AGM

Yesterday Bonmarché (BON) conceded defeat in its opposition to a takeover bid at 11.4p. On the 17th May it had rejected the bid because it “materially undervalues Bonmarché and its prospects”. The share price of this women’s clothing retailer was over 100p a year ago but the latest trading review suggests sales are dire because of underlying weakness in the clothing market and “a lack of seasonal weather”. Auditors might have qualified the accounts due to be published soon due to ...

Woodford, FCA, Asset Management

Today the FT reveals that the FCA have launched an investigation in the Woodford Equity Income Fund. Last night in the Evening Standard, Anthony Hilton estimated that only about 200,000 people were invested in Woodford funds, and added "so why all the fuss". I think it is about trust. Most people in the UK do not trust business. For example, it does not help public levels of trust when Woodford takes a £36m dividend (from Woodford Investment Management Limited year end March 2018 ...

Worldwide Healthcare Trust and Investor Voting

I recently received the Annual Report of Worldwide Healthcare Trust (WWH). This is one of those companies that has stopped sending out proxy voting forms for their AGM. The Registrar is Link Asset Services who seem to be making it as difficult as possible for shareholders on the register to vote. You either have to contact them to request a proxy voting form, or register for their on-line portal. I don’t want to register (and the last time I tried it ...