Woodford Patient Capital Trust plc

Specialist

Rated Fund 2018-19. A contender for adventurous bargain hunters

Woodford Patient Capital, run by renowned stock-picker Neil Woodford, was our ‘wild card’ for 2018 and its net asset value has climbed 7% since. It invests predominantly in early stage UK and US companies and, as it can take years for young businesses to fulfil their potential, it has yet to really show its paces.

The investment trust was launched to great fanfare in 2015 and quickly flew to a chunky 15% premium to net assets. A string of disappointing investments saw this widen to a 10% discount. In the past year, the discount has traded in a range of 2-19% – offering a bargain for investors with conviction in Woodford’s abilities.

Whitechurch Securities bought the fund for clients at launch, exited at a 15% premium and bought back in at an 8% discount in late 2017. Analysts at Stifel are also enthusiasts, upgrading the trust from ‘hold’ to ‘buy’ in late 2018.

They point to some of the unquoted investments, which represent 80% of the trust’s net assets, maturing. ‘Some investors appear to be throwing in the towel following the negative price return since launch. We think it is time to be contrarian,’ says analyst Iain Scouller.

Investors only pay a fee when performance exceeds a certain target. They pay 15% of any annual return in excess of 10%, but only where the asset value is higher than its level when the performance fee was previously triggered. In other words, growth of 10% in one year will not trigger a payment if the investment had plunged for several years before and not yet fully recovered.

Narrative and ratings content all as of 01 January 2019.

See all Money Observer rated funds
Name
Woodford Patient Capital Trust plc
Manager
Woodford Investment Management Ltd
Type
Closed Ended Investment Company
ISIN
GB00BVG1CF25
Sector
UK All Companies
Launched
21/04/2015
OCF
0.17 %
Risk Rating
5
3 Year Sharpe
-0.23
3 Year Alpha
-4.85
Yield
0 %
Fund Size
£ 745.08 million
NAV
96
Gearing
118
Discount Premium
-13
The investment objective is to achieve long-term capital growth through investing in a diversified portfoliowith a focus on UK Companies, both quoted and unquoted. The Company will aim to deliver a return in excess of 10% p.a. over the longer term.
Holding %
Autolus Therapeutics PLC ADR 10.92 %
Benevolentai 9.80 %
Oxford Nanopore Tech Ord 8.31 %
Crossco (1337) Plc 8.06 %
Proton Partners International Ltd 7.34 %
IH HLDGS INTL LTD 6.74 %
Immunocore Ltd Series 5.63 %
Oxford Sciences Plc 4.62 %
IH HLDGS INTL LTD 2.97 %
Prothena Corp PLC 2.49 %
Name
Woodford Investment Management Ltd
Address
OX4 2HN, Oxford, United Kingdom
Legal Structure
Closed Ended Investment Company

Managers

Stephen Lamacraft
Joined 04/21/2015

Stephen worked with Neil Woodford at Invesco Perpetual as a UK Fund Manager responsible for £120 million of assets. Stephen’s strategy focuses on fundamental analysis of large and mid-capitalisation companies.

Saku Saha
Joined 04/21/2015

Saku’s previous role was as analyst and investment director for the Invesco Perpetual UK Equities team. In this role, he was responsible for analysing investment opportunities and assisting Neil Woodford, with a specific focus on early-stage technology companies. Prior to his role at Invesco Perpetual, Saku spent many years at a senior level in the British Army.

Paul Lamacraft
Joined 04/21/2015

Paul began his career at Ernst and Young and his most recent role was as a fund manager on the UK Equities team at Invesco Perpetual. Paul has a private equity and corporate finance background and focuses on analysis of early stage and early growth companies.

Neil Woodford
Joined 04/21/2015

Neil Woodford began his career at Dominion Insurance in 1981 and then worked in the corporate finance departments of Reed International and TSB before focusing on fund management at Eagle Star in 1987. Following a brief stint there, Woodford joined Perpetual in 1988 and rose to head of investment at the firm. He ran the IP Income fund from 1990 and also took charge of the IP High Income at launch in 1988. He was appointed a Commander of the Order of the British Empire (CBE) in 2013 for services to the economy. Woodford announced he was leaving Invesco Perpetual in October 2013 to set up his own fund management business. He joined Woodford Investment Management on 1 May 2014.

Data provided by Morningstar.

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You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.