Sheltered from the dark rainy skies, their enthusiasm wasn’t dampened. They were in an inquisitive and provocative mood.
One of the first questions fired at Woodford asked what support he would have at his new smaller firm, having previously worked for a global outfit.
Woodford openly admitted that he wouldn’t have access to copious amounts of research but emphasised that he would have a team of four dedicated fund managers. They were individuals he hired a few years ago and who would now be working solely for him. Closer analytical support than he has ever had, he said.
It didn’t escape financial advisers that two of his team specialise in researching smaller companies – he is expected to invest around 5% in unquoted companies in his new equity income fund launching in June, so long as the opportunities allow.
Great brains, abysmal business record
It is well-known within fund management circles that Woodford has a passion for investing in very early stage in companies – companies such as Circassia, a biopharmaceutical company, and Xeros, a polymer bead-based cleaning business, both of which have since floated on the London Stock Exchange.
“There are some great universities and great brains in the UK, but we are abysmal at translating great science into great business,” he said.
His enthusiasm for Britain’s young scientists gives a hefty to clue as to why he has reservations over Pfizer’s bid for AstraZeneca. It is a company that he invested in several years ago at a time when most investors thought it was a busted flush. He was convinced that it offered shareholders value and it has since made his investors a tidy profit.
AstraZeneca stance
When quizzed on his stance on the proposed merger he didn’t hide his passion for AstraZeneca – a British success story – and he warned of the potential consequences of an overseas owner and highlighted that any promises made by Pfizer are not legally binding.
“Ultimately shareholders will decide the outcome of this bid, barring any political intervention. But it is worth highlighting how important AstraZeneca is to the UK’s scientific infrastructure. Policymakers’ long-term ambitions to rebalance the UK economy will only succeed if it can encourage businesses like Astra to continue to invest in our science base."
