Neil Woodford makes a slow start
Star fund manager Neil Woodford has admitted investors may be disappointed with the performance of his Woodford Patient Capital investment trust.
Star fund manager Neil Woodford has admitted investors may be disappointed with the performance of his Woodford Patient Capital investment trust, which listed in April last year. The trust has lost 11% from its net asset value (NAV) in the six months to June.
Disappointing investments included biopharmaceutical company Circassia (which is 21% owned by the trust), where late-stage trials of a cat-allergy vaccine showed the drug produced no better results than a placebo.
The fund also suffered from a wider weakening in investor sentiment towards biotechnology stocks, partly brought on by Hillary Clinton's promise to crack down on drug pricing. In June, the Nasdaq Biotechnology index had fallen roughly 40% from its July 2015 peak, though it has since recovered some of those losses.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Woodford, a long-time favourite with retail investors, emphasises that it is "early days" for a strategy that is "looking to exploit very long-term opportunities". But it's clear that some of the early enthusiasm for his new venture, which specialises in riskier, early-stage companies, has died down.
The fund was initially highly popular with investors and quickly began trading at a premium to NAV (meaning that investors were willing to pay more than the book value of its assets because they believed that Woodford's investment decisions would add greater value). It is currently trading at a 3.2% discount to NAV.
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
-
Are you one of 15 million people at risk of retirement poverty?
Two-fifths of people in the UK aren’t on track for a minimum lifestyle in retirement, new data shows. Are there steps you can take to boost your pension?
-
150 banking hubs now open across UK – is there one near you?
As the 150th banking hub opens its doors, a Post Office deal that offers basic banking services has also been extended until 2030. We explain what this means for you