‘Woodford knew he was toast as he took savers’ money’, says top investor Peter Hargreaves
The founding father of one of many City’s top funding corporations has launched a scathing assault on Neil Woodford, the star fund supervisor whose enterprise shut final week, taking the money of 1000’s of buyers with it.
Peter Hargreaves accuses Woodford of working an funding operation ‘probably inadequate for purpose’, pours doubt on his stock- choosing expertise, and says he invested in unquoted companies with out adequate data.
He additionally believes Woodford refused to bow to stress to droop charges on a flagship fund – Equity Income – after it was suspended in June as a result of he ‘knew he was toast and took as much money as he could, anticipating the demise of his business’.
‘Deep regrets’: Neil Woodford
The extraordinary outburst from Hargreaves, who launched funding platform Hargreaves Lansdown from a bed room in 1981 and oversaw its rise to a FTSE-100 firm, comes days after Woodford was deposed as supervisor of the £2.9billion Woodford Equity Income fund.
It adopted a disastrous efficiency run and the fund’s suspension in response to a flurry of investor withdrawals that would not be met as a result of Woodford had purchased shares he couldn’t promote shortly sufficient.
Woodford has additionally stop from distressed funding belief Woodford Patient Capital and is standing down from managing his third fund, Income Focus. Like Equity Income, it was suspended final week.
It has left Oxford-based Woodford with no alternative however to shut his enterprise, Woodford Investment Management, that he based in 2014 after constructing a repute as a top supervisor within the 2000s.
Critical: Peter Hargreaves
In an unique interview with The Mail on Sunday, Hargreaves says: ‘Was he [Woodford] an ideal stock-picker? With the good thing about hindsight, I’m not certain.
‘It seems he didn’t have the data in unquoted firms and infrequently every week glided by with out him being steeped in varied issues.
‘The crux of the matter was his organisation was probably inadequate for purpose – couldn’t address the billions that poured in from buyers.’
Hargreaves additionally claims Woodford’s technique of shopping for under-valued shares now not labored.
‘He hadn’t recognised the world is considerably completely different,’ he says.
‘Many cyclical stocks won’t recuperate – they are going to progressively fade out of enterprise. The funding scene and world financial system is significantly modified.’
Hargreaves Lansdown, the place Mr Hargreaves is a shareholder however now not an worker, could possibly be fined for its function in closely selling Woodford Equity Income regardless of having issues over its portfolio.
Yesterday, Woodford stated he appreciated that many individuals within the monetary trade wished to precise their views. He added: ‘I am sorry, and I personally deeply regret the impact events have had on The Mail on Sunday readers who placed their faith in Woodford Investment Management and invested in our funds.’