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UPDATED: Neil Woodford - the big question panicking NEDS must ask him about Woodford Patient Capital Trust

By Tom Winnifrith | Monday 12 February 2018


Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.


UPDATED: Over the weekend I revealed a potential nuclear landmine that could well blow up the Woodford Patient Capital Trust (WPCT).The bad news for the asleep at the wheel nmot so independent NEDS at the Trust is that I have found two more landmines which have been averted but are there more?

You will remember that WPCT is now more than 80% invested in unquoted stocks and thus unable to put even one more cent into unlisted equity while the flagship Unit Trust is almost at its 10% limit so its ACD will, in the current climate, now be allowing it to make any further unquoted investments either. But on Sunday I revealed how Woodford Investment Management is legally on the hook to stick a stack more into unlisted cash guzzling investment crock of shite company Ombu.

This PDF scan shows that both Autolus and Atom Bank (8th and 9th largest holdings respectively in WPCT at 31 December 2017) had funding commitment provided by investors thus.building on point raised in Ombu Group. 

The Atom Bank may not be Woodford but it may be and Autolus certainly is. Cynical Bear states that these committments have now been made but...

a) Atom Bannk is in desperate need of cash and with Woodford unable to support it how is that going? And I now wonder how many other fund committments has Woodford entered into with unquoted companies which he is now not able to meet? Is this disclosed anywhere?

Have the not so independent independent directors at the Trust quizzed Britain's most conceited fund manager on these potential landmines. Thought not....


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