Anyone fancy Woodford Patient Capital at 32% discount to NAV

The Asset value is debatable. Sales of some of the holdings in the Unit Trust could depress prices of the unquoted and illiquid holdings. There is a general shadow over the way the unit trust swapped holdings for a stake in the trust. I had considered it but the overall smell is keeping me away.

I have gone for VPC Speciality Lending, currently yielding over 11% and at a 20% discount. I had sold out at breakeven 18 months ago having reaped an 8% dividend. Woodford dumping of the stock to raise cash will have contributed to the current discount. The trust is making regular repurchases and the noises are generally positive. 

Don't forget One reason the trust is still open is that unlike the fund it will not need to sell assets so it relies in people trading so in future you have to hope that people will not think the brand is toxic and continue to buy from you.But many private equity funds such as Pantheon have done well over the years(since the 2008 crash) but still trade at approx 20% discount presumably because investors worry about selling illiquid holdings in a downturn so its possible its price may stabilize but certainly feels like a punt with all that's going on including the trading across funds and the prices used and the Guernsey listings etc
But there are also rumblings of the board picking a new manager/fund company which could give it a boost maybe?

The NAV is highly dubious to say the least. It values a lot of the rubbish Neil bought at some eye watering amounts. For example, Industrial Heat - a company who's science has been debunked by countless academics and has some very dodgy characters associated with it, is valued at $4bn.



It's true the trust won't need to sell assets but the Woodford Equity Income Fund which is currently suspended facing massive redemptions does need to sell assets. It has a large holding of WPCT itself which will probably be sold, plus a huge amount of the stuff that's in WPCT is also in WEIF, and it will almost certainly have to go as well.

Anything change due to current news on Woodford fund closure?

I think they do have to sell assets as there borrowing is to high. Gearing is over 119% which is above the agreed amount with there lender.

As above, the income fund will sell WPCT which will keep the discount wide, and there will inevitably be scepticism about some of the valuations. It can't all be dross though! In the longer term it will surely pick up a bit