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Woodford testing patience?

Posted by: Brian Dennehy

 

The 2nd anniversary of Woodford Patient Capital Trust is just ahead.  Looking at performance to date he might be stretching the loyalties of his followers.

Back in February 2015, ahead of the launch of the latest WoodfordAnalysis Save to my funds Add to basket fund, we suggested that you might do better considering proven alternatives.  To date we are right, and massively so.

The new fund was to represent his best blue-chip ideas in addition to early stage and early growth companies.  We suggested that you might be better advised to opt for proven funds in each of these two areas and highlighted Liontrust UK Small CompaniesAnalysis Save to my funds Add to basket and Schroder RecoveryAnalysis Save to my funds Add to basket.

Performance of these three is shown in the chart below.  In a nutshell  whereas the Woodford fund is down a little over 9%, the other two funds are up 41% and 11% respectively (an average of 26% growth if you had split your money between them both).

If you bought these two funds equally they have given you a huge 35% extra growth in under two years.

Neil Woodford deservedly commands huge respect.  But we see no evidence that this particular offering of his is about to provide better returns than proven alternatives.

 

Chart 1: Woodford Patient Capital

Topic: Fund analysis


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