Neil Woodford was regarded as a superstar value investor money manager in UK. He had nicknames like Oracle of Oxford, Warren Buffett of UK. Today, these nicknames is an insult to the real Warren Buffett because he suspended redemptions and denied investors return of their money. Failed money managers close down their funds. Rarely does one hear about money redemption being denied to investors.
What risk management mistakes did he make to be reduced to this state, given his stellar multi-decade track record in the past?
https://www.bloomberg.com/news/arti...ly-sorry-about-freeze-in-somber-youtube-video
The decision to freeze redemptions is a shocking reversal for the money manager, who had built up a reputation over many decades as a stellar stock picker.
By 2013, when Woodford announced he was striking out on his own after two decades at Invesco Perpetual, he had accumulated an almost cult-like status among investors, and their money followed him. In his first full year on his own, Woodford’s flagship fund returned 16%, beating all 50 of its peers tracked by Bloomberg. That has all changed, with the fund down 7% this year through May 31 and down 18% in the past 12 months.
“No one fund manager has the secret sauce to outperform forever no matter how big the reputation or how good of a track record,” said Ryan Hughes, head of active portfolios at AJ Bell. “What’s different here is the fact Woodford suspended the fund. That takes it to another level.”
What risk management mistakes did he make to be reduced to this state, given his stellar multi-decade track record in the past?
https://www.bloomberg.com/news/arti...ly-sorry-about-freeze-in-somber-youtube-video
The decision to freeze redemptions is a shocking reversal for the money manager, who had built up a reputation over many decades as a stellar stock picker.
By 2013, when Woodford announced he was striking out on his own after two decades at Invesco Perpetual, he had accumulated an almost cult-like status among investors, and their money followed him. In his first full year on his own, Woodford’s flagship fund returned 16%, beating all 50 of its peers tracked by Bloomberg. That has all changed, with the fund down 7% this year through May 31 and down 18% in the past 12 months.
“No one fund manager has the secret sauce to outperform forever no matter how big the reputation or how good of a track record,” said Ryan Hughes, head of active portfolios at AJ Bell. “What’s different here is the fact Woodford suspended the fund. That takes it to another level.”
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