Neil Woodford says he has a ‘pretty good idea’ of how his portfolio will look when he starts trading next week and confirmed he will be backing early stage unquoted companies.
The CF Woodford Equity Income fund goes live on 19 June and while he said it is too early to name his likely holdings, unquoted technology companies will be a theme within the portfolio.
‘The UK has some of the best universities in the world, developing some of the best intellectual property,’ he said. ‘Unfortunately, as an economy, we have not had a good track record of converting these great ideas into long-term commercial success.’
He added that the lack of capital for some of these early stage companies ‘has created a compelling opportunity, in my view’.
‘I strongly believe that investing in early stage technology businesses can add meaningfully to the long-term performance of the fund, albeit individual positions will be very small in the context of the overall portfolio and, in aggregate, they will be a relatively small part of the fund,’ he said.
Backing ‘knowledge-based’ industry will have wider benefits for the economy, he added.
Investors will be awaiting the names in Woodford’s top 10 holdings being revealed with most expecting old favourites, such as Astra Zeneca and GlaxoSmithKline to feature prominently.