Should you be buying Woodford’s biggest bets?

One year ago, Neil Woodford’s fund was suspended and its holdings were frozen in time, destined to be sold off. Some argued it was unfair and that, given more time, his picks would come good. He was not regarded as Britain’s leading fund manager for nothing.

Telegraph Money has analysed how his four largest holdings have performed since the suspension and asks whether they are worth buying.

One of the largest residential property developers in Britain, Barratt’s share price gained 70pc between June 2019 and March 2020 but then crashed after Covid-19 struck. It is now just 1pc higher that when the fund was suspended.

The housebuilding sector has been tipped by stock analysts to bounce back as lockdown eases. Barratt reopened construction sites on May 11. Peel Hunt, a stockbroker, has a “hold” rating on the shares.

Another builder, Taylor Wimpey’s shares also rallied strongly into 2020 but then came undone. It is recovering as lockdown eases but has still risen by only 5pc in the past 12 months, not enough to justify Mr Woodford’s large stake.

Barratt Developments: Taylor Wimpey: IP Group:

This investment company backs early-stage science and technology stocks with links to British universities. Its share price has fallen by almost 20pc in the past 12 months. As a result, Mr Woodford’s faith in some of Britain’s best scientific brains would not have paid off yet.

That is not to say it never will. Analysts at Berenberg, a bank, rate it a “buy” and predicted that its share price would rise from 65p to 100p.

This is a “subprime” or doorstep lender, which specialises in lending to higher-risk individuals and businesses via credit cards and online loans. The nature of its loans makes it vulnerable to defaults during a recession.

It was arguably Mr Woodford’s biggest mistake, but he stood by it. In 2017 he owned nearly 20pc of the company when its share price fell by 60pc in two days after it announced an investigation by the regulator. It lost another 70pc in 2020 during lockdown and is now worth a 10th of what Mr Woodford paid.

Peel Hunt has a “buy” rating on the stock on the basis of an “overly pessimistic” valuation.

Provident Financial: