Neil Woodford’s listed investment trust’s stock rose this morning following a share price slide after the former star trader’s flagship fund was suspended.
Shares in Woodford Patient Capital Trust were up more than eight per cent today.
The suspension of Woodford’s Equity Income Fund last week had a knock on effect on the investment trust. Shares dropped as much as 22 per cent following the announcement.
The comeback follows a Morningstar note that said the trust had fallen to the widest discount on the market, which could present a buying opportunity.
Shares fell to a record low of 59p following the suspension, which is a discount of 32.1 per cent to the net asset value of the companies that it invests in.
Hargreaves Lansdown has also seen its share price suffer following last Monday’s announcement.
The price has tumbled from 2,228p on Monday to 1,899.5p this morning.
The fund supermarket had heavily promoted the equity income fund and was included on the broker’s list of 50 top funds despite recent poor performance.
Hargreaves Lansdown chief executive Chris Hill was forced to issue an apology to clients impacted by the fund freeze. “We all share their disappointment and frustration,” he said.
Investors are unable to trade or withdraw money from the Woodford Equity Income Fund after it was frozen last week following a spike in redemptions.
Assets in the fund have fallen from a £10.2bn peak two years ago to less than £4bn, according to Morningstar.