New disclosures came Tuesday on Woodford’s latest fire sale as Malin disclosed that on Oct. 1, Woodford had sold the majority of its stake in the Irish investment vehicle to a U.S. fund.
The move comes as Neil Woodford’s Woodford Investment Management continues to reposition the portfolio of the firm’s flagship Woodford Equity Income Fund (WEIF), which was suspended in June amidst a flurry of redemptions that the fund was unable to meet. The fund’s corporate director, Link Fund Solutions, continues to expect trading in the fund to remain suspended until December.
The notification confirmed that U.S. firm Pentwater Capital Management had acquired a 23% stake in Malin Corp. plc (ISE:MLC) in recent weeks, growing its overall holdings to 26%. At the same time, Woodford notified the firm that its ownership stake fell below the 3% threshold on Oct. 1.
In the notification, Pentwater said that it acquired the Malin stake “at a deep discount to its conservative intrinsic value of €7.90 per share.” On Tuesday, Malin closed at €4.40 per share and a market cap of €201 million ($225.9 million).
At June 30, the WEIF had held a 19.9% stake in Malin. The Irish firm’s portfolio includes immuno-oncology play Immunocore Ltd., mAb company Kymab Group Ltd. and CAR T play Poseida Therapeutics Inc. -- the latter of which also has Pentwater as an investor.
Since the June suspension, the WEIF’s portfolio, totaling about £3.5 billion ($4.3 billion) in assets, has fallen about 12% in valuation.
Another of Woodford’s funds, Woodford Patient Capital Trust (LSE:WPCT), has fared even worse. Since the WEIF suspension on June 3, the Patient Capital Trust share price has fallen 36.10p (47%) to 40.40p, giving the fund a market cap of about £360 million ($395 million).
On Sept. 30, the interim report for Patient Capital Trust said the fund’s board was continuing talks with potential fund managers to replace Woodford.