Adrian Lowcock, head of personal investing at Willis Owen, summed it up when he told the Financial Times: “We have seen the complete demise of the most famous fund manager the UK has seen for years… This collapse is on a par with the implosion of New Star at the height of the financial crisis, and it will shake the funds industry to its core.”
We think this article is unfair (1) It was not just a few lone journalists but many fund managers, often in private, voiced concerns about Woodford especially the use of a barbell approach, high % of illiquid (or private) investments, use of leverage, high % ownership in shares, complicated holding structures etc. (2) The industry has suffered because of Woodford and has not gained. In any way. (3) The pressures described are not new and regulation has relentlessly moved in the direction of reforming the industry. It is not flawless.
