WPCT is a concentrated portfolio of early stage unquoted and quoted companies selected for their high return potential. The concentrated nature means there are high levels of stock-specific risk. It is run by Neil Woodford, one of the most successful fund managers in the country. While it is the first portfolio of its type he has managed, Neil has significant experience investing in early-stage companies over the decade prior to launching the trust. WPCT trades on a 10% discount following a disappointing start to its life, which has seen it lose 10% in NAV terms. There have been a number of high profile issues with individual stocks that have gathered headlines, and sentiment remains weak towards the trust, reflected in the discount. On the other hand, attribution analysis shows the trust’s holdings in unquoted stocks have been net gainers since launch, and there have been recent significant gains from the flotation of Autolus, both of which may indicate there is potential in the portfolio. The performance fee will not kick in until NAV has risen by around 50% from here, meaning that investors would only pay the 0.18% ongoing charges until that mark has been passed.
