LONDON: Once one of Britain's most celebrated money managers and idolized by a legion of investor devotees, the collapse of Neil Woodford's business has been swift and brutal.
Woodford's team had initially been given until December to execute on their plan and had hired bankers PJT Partners to aid their efforts. The team also traveled the length and breadth of Britain to persuade advisers and investors to keep the faith.In a letter to investors on Tuesday, Link said it was closing the fund as it did not believe the repositioning of the portfolio would be completed by December, potentially leading to a need to suspend again, to the detriment of investors.
Woodford was initially surprised and then dismayed by the decision, a company source with direct knowledge of the meeting told Reuters."There was no indication of their intentions before that at all ... So this was a real surprise," the source told Reuters. As a 'value' investor, Woodford made his name during a storied 26-year career at U.S. firm Invesco by buying shares in companies on which the market had become too pessimistic, hoping to chalk up outsize profits as good news eventually came through and was reflected in the share price.
Once the starting gun was fired, that name spurred investors to invest in first the Equity Income fund, then the listed Woodford Patient Capital Trust and, in 2017, the smaller LF Woodford Income Focus fund.
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