Since taking the reins of Edinburgh Investment Trust in 2008 Neil Woodford has expressed concerns about the bleak macro picture.
His bearish take on the recovery is reflected by his uber conservative portfolio. For a considerable stretch his calls went unrewarded as investors ‘dashed for trash’.
However, after holding firm the market has now turned to favour Woodford’s stance, triggering a notable lift in his performance.
Demand for the £912 million vehicle has surged too, and after delivering 21.40% over the 12 months to May a good 8% above the its FTSE All Share benchmark its premium rose to 9.1% on 10 June, 2% off its historic peak.
Can the premium be justified? The rotation into defensives and re-rating of these stocks is clearly underway, prompting analysts at Collins Stewart to rate Woodford’s trust as a ‘buy’.