UK Primary Opps found value in Woodford fire sale

Shares were already depressed

The liquidation process of the former Woodford Equity Income fund (now LF Equity Income) provided a perfect opening for MFM UK Primary Opportunities to take advantage of a “double discount” created by the wind-up of the once-£10bn portfolio.

Co-manager of the fund Oliver Brown told Investment Week that while the team typically looks to a fundraise or share issuance to buy into a company, there are occasions when opportunities arise to buy into firms "second-hand" via other investors, and the Woodford collapse was such an instance. "We bought some shares from the Woodford fund because we knew they were having liquidations," he said. "We knew that they had big shareholdings in specialist small- and mid-cap companies, so we bought in." Brown highlighted two purchases made available by the fire sale in the immediate aftermath...