Woodford Patient Capital springs back to life
Woodford Patient Capital Trust (WPCT) has been given a welcome share price boost after portfolio holding Industrial Heat benefited from a revaluation uplift of 357% to $112.9m.
The news resulted in an 8.8% increase in Woodford’s net asset value (NAV) to 99.26p, helping NAV to rise above its value when the fund was launched in April 2015.
Industrial Heat is making promising developments with its new energy technologies that focus on harnessing poorly-understood energy science such as cold fusion.
Winterflood analyst Kieran Drake argues the trajectory of this type of business is not always linear as the previous failure one of Industrial Heat’s technologies and involvement in litigation led to a write-down.
Drake says there can also be a ‘lag’ between positive progress in unquoted companies and revaluations.
‘In our view, it is therefore possible that a number of the companies in the portfolio may hold latent value given their progress in the time since their last valuation,’ he comments. (LMJ)