Woodford Patient Capital hints at raising more funds


Originally published at: http://whichinvestmenttrust.com/woodford-patient-capital-hints-at-raising-more-funds/
Not content with being one of the most successful new launches in recent years, the trust has hinted at further fund raisings, as it successfully deploys all of the money raised last year. Woodford Patient Capital Trust (LON:WPCT) has now fully invested the £800 million raised in its IPO (initial public offering) last year, despite…


It is an extraordinary vote of confidence in Woodford that he’s raised so much money. I wonder how much of a personal burden it might be for him or if he confidently shrugs it off. I suspect it is the latter because his long successful experience in investing gives him the confidence he will repeat the trick.

I would likely buy some more of this if he went back to the market to raise more capital.


Yeah I agree, he’s the kind of fund manager you feel you can trust. One thing though, this trust is proper long term, you know, it might not bring home the bacon for several years at which point there will be those complaining that he’s no good, lost his touch etc.

I love the concept of this trust of making money for investors whilst supporting nascent British ideas and British companies rather than it having to go overseas to America, China or Japan to be funded and developed, and I trust Woodford to get enough calls right for us all to make a bit of money.

But investors need to remember it’s PATIENT capital !


Before buying into any new share raising, check the costs of buying both the existing shares and of buying new shares however the latter are issued. Existing shares might be at a premium; there will be a broker charge; and there might be stamp duty to be paid. With new shares there might be a corporate action charge depending upon the broker/platform used, and the issue costs of the new shares are likely to be included in the purchase price meaning that the new shares are, in effect, being bought at a premium. e.g. new shares (including C shares) issued at 100p might have 2% issue costs included leaving the holder with a NAV of 98p, so a ‘new’ purchase is made at a premium skightly above 2%. Get yer maths heads on!


Maiden set of results for WPCT now available from here. Contains the following quote from the chairman:

…in January, we announced we were looking at ways to raise additional capital. With the continuing uncertainty prevailing in markets, now is not an appropriate time to raise capital. The Board will, however, monitor the situation and advise shareholders of any developments.