NorthWest Biotherapeutics Inc (NWBO)

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Suspended Woodford fund has sold around 100 mln pounds of assets

Neil Woodford has sold 97million pounds ($123 million) of shares over the past 10 days toboost liquidity in his suspended equity income fund, a Woodfordspokesman said on Thursday.

He needs to raise cash from the Woodford Equity Income Fund,which had 3.7 billion pounds in assets under management whensuspended, to pay back investors seeking their money due to poorperformance.

The fund was frozen on June 3, shortly after a 263 millionpound redemption request from the pension fund of Kent CountyCouncil in southern England.

Market participants have been expecting a wave of forcedselling by Woodford, with some hedge funds taking out shortpositions against his investments.

"Since suspension, Woodford has sold 97.1 million pounds ofstock as he continues to reposition the Woodford Equity IncomeFund portfolio," a Woodford spokesman said by email.

Woodford has said he will shift the focus of the fund tolarger, more liquid stocks.

Since the equity fund was suspended, Woodford's firm hassold or transferred stakes worth at least 808 million pounds inUK listed companies, according to a Reuters analysis of stockexchange filings.

However the Woodford spokesman said the bulk of thesefilings related to stock transfers, following the firm's loss of a mandate from wealth manager St James's Place.

Woodford managed an investment portfolio for St James'sPlace worth 3.5 billion pounds that was held separately from thesuspended equity income fund, but St James's Place cancelledthat mandate last week so the portfolio is now being transferredback to them. Wealth manager Openwork also dropped a 330 millionpound mandate with Woodford last week.

Woodford's firm has cut or transferred its position in atleast 22 listed UK companies, including FTSE 100 company Barrattand smaller companies Time Out Group andPurplebricks.

The filings may not represent the full extent of Woodford'sUK sales or transfers as firms in Britain only have to reportstake reductions when they own more than 3% or 5% of anunderlying stock, depending on the company's home base.

The St James's Place mandate did not fully replicateWoodford's equity income fund, which has come under fire forinvesting in illiquid stocks. Woodford did not invest inunlisted companies or small overseas stocks on behalf of StJames's Place, the St James's Place spokesman said.

Woodford's stake changes, and the expectation of furthersales, have had an impact on some of its investments in smallercompanies.

E-Therapeutics has fallen 9.1% since June 3, IPGroup is down 8.1% and NewRiver REIT is off 8%.

"Woodford is creating some bargains for savvy investors bybeing forced to liquidate positions," said Neil Wilson, analystat Markets.com.($1 = 0.7878 pounds)

(Additional reporting by Simon JessopEditing by Rachel Armstrong and Keith Weir)

https://mobile.reuters.com/article/amp/idUSL4N23K2I8

DIFFERENT STROKES FOR DIFFERENT FOLKS