Insider: Action at Woodford Patient Capital

Patient Capital's health improves

Neil Woodford's £800 million growth fund got off to a flyer when it was launched at 100p in April last year. Woodford Patient Capital Trust immediately traded at a premium to net asset value (NAV), but markets have been unkind and the shares sank to a low of just 80p this July.

Last month we were told that NAV at 30 June was down 11% at 86.8p from 97.37p in December and nearly 102p a year earlier.

"I understand that some investors will be disappointed with the performance so far, but it is early days for a strategy that is looking to exploit very long-term opportunities," said Woodford. "Sometimes, the share prices of quoted early-stage businesses will be volatile and they may sell off in small volume for no fundamental reason.

"I see these events as opportunities because share prices can become detached from reality. As I have said before, not everything we invest in, small or large, will succeed and some will encounter problems."

Alan Hodson is listening. The investment trust veteran and former global head of equities at UBS joined Patient Capital just days before the half-year report.

To celebrate he's just paid £47,000 for 50,000 shares in the trust at 94.05p, roughly in line with current NAV.

Switching off ITV

Just three weeks after ITV withdrew its proposal to buy media rights firm Entertainment One for £1 billion, chief executive Adam Crozier and right-hand man Ian Griffiths have cashed in £2 million.

ITV bosses ditched the takeover attempt a fortnight after it began, so, with interim results reported in July, the pair were free to sell.

Crozier, who took the top job at the broadcaster six years ago, offloaded 500,000 ITV shares at 200p. He still owns almost 1.9 million shares worth £3.7 million at today's prices. Barbara Griffiths also sold 500,000 for slightly less, 199.3p.

But have they made the right decision?

Credit Suisse doesn't think so. The broker rates the shares as 'outperform' with 240p price target. A lot of the other City heavyweights are optimistic too.

Jonathan Helliwell at Panmure Gordon slaps a 265p price tag on ITV after interims beat forecasts. Estimates were cut post-Brexit, but not by as much as feared. Based on declines in net advertising revenue (NAR) of 2% and 4.6% for this year and next respectively, ITV trades on 11.9 times current year earnings per share estimates, rising to 12.5 for 2017.

Certainly a dividend yield of well over 4% is a major draw for income hungry investors, and Helliwell has a message for punters: "For investors who wish to retain some UK cyclical exposure in portfolios, we see good long term value in ITV and remain positive."

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.