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Neil Woodford exits BAT, buys more Lloyds Bank
By Neal Underwood | Fri, 14th July 2017 - 16:26
Fund manager Neil Woodford of Woodford Investment Management made a number of key buys and sells within his three portfolios during the month of June.
The big news is that within CF Woodford Equity Income and Income Focus he has sold his position in British American Tobacco (BATS), which has been in both funds since their inception and, indeed, a part of his mandates for most of his career.
Woodford believes the sector is now starting to look fully valued. His team points out that at the peak of the dotcom bubble in March 2000, you could have bought BAT for only 225 per share. Woodford just sold his at over £50 per share.
He retains some tobacco exposure through Imperial Brands (IMB), which he believes is still undervalued, although "the valuation opportunity elsewhere in the sector has largely played out".
At the same time in the Equity Income fund he has added to domestically-focused stocks such as Barratt Developments (BDEV), British Land (BLND), Taylor Wimpey (TW.) and Lloyds Bank (LLOY), reflecting a more positive view on the UK economy.
Meanwhile, he introduced two new holdings in the shape of Morses Club (MCL), a well-fancied unsecured loan provider, and early-stage tech firm Drayson Technologies.
Within Income Focus, Woodford added a new position in housebuilder Redrow (RDW), where management has been investing in the company's future growth and cash returns to shareholders have been modest compared to other housebuilders.
In Patient Capital Trust (WPCT) Woodford added Drayson Technologies, as mentioned above, as well as Accelerated Digital Ventures, which invests in a portfolio of early-stage digital businesses. In addition, he added to his positions in Halosource (HALO), Thin Film Electronics, Idex, Theravance Biopharma and Xeros (XSG). No disposals were made.
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.
|BOVIS HOMES GROUP||1,240.00p||1.47%|
|STOBART GROUP LTD||234.00p||-0.64%|
|WOODFORD PATIENT CAPITAL TR...||85.00p||-0.12%|
|BRITISH LAND CO||666.00p||0.76%|
|BRITISH AMERICAN TOBACCO||3,700.00p||1.37%|
|LLOYDS BANKING GROUP||65.70p||-0.59%|
|XEROS TECHNOLOGY GROUP||147.50p||1.72%|
|All data 15min delayed as of: 15:04:06 22/04/18|