Woodford Patient Capital Share Discussion Threads

[ltcm1] 15/10/2019 09:36

My guess is it will be around 33% at Weif and WPCT will fall to pennies.

When you are a forced seller of a whole bunch of investmensts that have no obvious commercial value in terms of future profits, that never ends well.

It is ironic that the man who lost a fortune on a washing machine with plastc balls has found himself washed up.

As Jonwig predicted, nemesis has met hubris.

[trying2getrichquick] 15/10/2019 09:30

Bail out ASAP, it’s better to have 50% of something than 100% of nothing. Anyone burying their head in the sand, thinking things may get better, better get their head out of the sand and out of the fund Asap.

[spectoacc] 15/10/2019 09:26

"Mr Woodford said: “This was Link’s decision and one I cannot accept, nor believe is in the long-term interests of LF Woodford Equity Income Fund investors.”"

Er, so what does he plan to do about it?

He genuinely thought WEIF had a long-term??

Well, I guess mathematically, something can lose 20% pa forever without ever going to zero.

Edit -- missed this:

"BlackRock and Park Hill will be paid by the fund for their help with the wind-down process. LFS said these fees would likely be greater than the periodic ACD charge paid by the fund due to the requirement to sell all of the fund’s assets."

[dr biotech] 15/10/2019 09:22

A decent summary from the telegraph. Woodford not happy, but I won’t be donating to his gofundme page anytime soon.

What happened

Former star trader Neil Woodford has been thrown off his £3.5bn flagship Woodford Equity Income Fund, which now faces liquidation.

Link Fund Solutions, which had been managing the fund since it was suspended earlier in the year, said WEIF will be split into two parcels that will be sold.

What has been said

Link said: “Whilst progress has been made in relation to re-positioning the Fund’s portfolio, this has unfortunately not been sufficient to allow reasonable certainty as to when the repositioning would be fully achieved and the Fund could be re-opened.”

Mr Woodford said: “This was Link’s decision and one I cannot accept, nor believe is in the long-term interests of LF Woodford Equity Income Fund investors.”

The Financial Conduct Authority said it “welcomes the removal of uncertainty that LFS’s decision provides”.

What happens now

WEIF’s assets will be divided between two parcels, consisting respectively of listed assets (portfolio A) and “certain highly illiquid assets” (portfolio B). BlackRock will be responsible for selling the former, while specialist PJT Partners will sell the latter. Investors will be paid out based on how much it made in the sale.

The name of the fund will change from “LF Woodford Equity Income Fund” to “LF Equity Income Fund” to reflect Mr Woodford’s exit.

[catsick] 15/10/2019 09:20

5p is my guess for the realization here, most of this fund is unlisted garbage money losing pipe dreams like cold fusion, trying to sell this stuff in this market with a straight face is a laugh, these are not unicorns they are donkeys with ice cream cones taped on ....

[andy] 15/10/2019 09:07

Fund "gating" is occurring in Korea too!

[porsche1945] 15/10/2019 08:57

The board of wpct just as bad, they had plenty of time to get to grips with this funds management aeons ago. Too late now. I wrote on Woodfords site two years ago that the fund was likely to hit trouble and was shot down by his disciples, really a case of buying the hype, HL with it all to answer for too. His back brexit britain mantra a disaster, brexit a disaster for the uk full stop, probably a sign of things to come.

[rcturner2] 15/10/2019 08:52

monty, the payout will be at NAV, which is falling every day.

[rcturner2] 15/10/2019 08:52

I think the -20% performance since he gated against a flat market was the final nail in the coffin for Link.

[montyhedge] 15/10/2019 08:52

I wonder what the payout will be in the income fund 65p in the pound my guess, any thoughts?

[manc10] 15/10/2019 08:48

anybody seen the trol 1nhs lol

[cwa1] 15/10/2019 08:48

Wow @SpectoAcc, think you should get off the fence and tell us what you really think rather than always sugar coating things ;-)

Seriously though, thanks for the comprehensive bear side of it, a compelling list of unattractive features.

Think I'll give it a miss for now

Thanks again to one and all.

[topvest] 15/10/2019 08:47

The end game is getting closer. The read across I suppose is that they are struggling to sell anything for a decent price. I think WPCT will likely go bust. Woodford Investment Management are in deep trouble if they are still legally bound to honour the Proton investment commitment, and that's before any legal claims. Likely end result: WEIF wound-up with holders losing half of their money, WPCT owned by the lender and WIM going into administration.

Woodford still in denial. WPCT board still behind events.

[jonwig] 15/10/2019 08:42

A very detailed analysis of WPCT was commissioned by share price from an ex-fund manager. The results are behind a paywall:



The conclusion is that the true NAV is about 3p, with some margin of error ... ie. could be less.

"Hero to Zero."

[diku] 15/10/2019 08:41

It is never their fault...always outside factors beyond their control...the system is set up such...




Dr Biotech
15 Oct '19 - 08:25 - 10703 of 10707
0   1  0



Should sack the entire board here. How can they accept the dismal performance for so long and the mishandling of the overdraft? Whilst you can accept that some high risk early stage investments will go sour you shouldn’t allow them to be over leveraged.

[rcturner2] 15/10/2019 08:34

The crook should be in jail.

[jonwig] 15/10/2019 08:27

The FT adds this:

PJT Partners (Park Hill) has already been appointed to sell the unlisted and illiquid assets. The listed assets will be managed by BlackRock as transition manager to prepare for the fund's winding up. No word on when exactly investors can expect their cash, but at least there is now an end in sight.

Suggests to me that BlackRock, with its big WPCT holding will be the obvious firm to manage WPCT through its dotage!

[dr biotech] 15/10/2019 08:25

Should sack the entire board here. How can they accept the dismal performance for so long and the mishandling of the overdraft? Whilst you can accept that some high risk early stage investments will go sour you shouldn’t allow them to be over leveraged.

[cwa1] 15/10/2019 08:24

Thanks all, jonwig. As I mentioned I haven't been following this one closely but assumed that, as the current putative(fantasy?!) figure for NAV is 64p, then after all the rubbish is written down to zero then there might still be some value left in the ashes and wondered what it might be. The residents here seem to think not much South of zero then!