Lethal cocktails rarely end well

But what happens when performance starts to falter and more investors head for the exit?

The plight of investors trapped in illiquid investments has been a topic of discussion in The Gowdie Letter.

In the July 2019 monthly issue, we altered readers to the dilemma UK investors were facing in the Woodford Equity Fund.

…The Financial Times on 2 July 2019…

‘Investors in Neil Woodford’s £3.5bn [AUD$6.3 billion]Equity Income fund will have to wait at least another month to access their money, as Britain’s best-known stockpickerannounced that the fund’s suspension would continue indefinitely.

‘The suspension of Woodford Equity Income four weeks ago sparked the biggest controversy in UK fund management for a decade, with hundreds of thousands of retail investors unable to reclaim their capital from a fund that has since been forced into a fire sale of its assets.’

That was three months ago.

The news has gone from bad to worse.

Here’s the latest headline from the 16 October 2019 edition of The Daily Mail:

The Equity Income Fund won’t be re-opened. It’s going to be wound up.

And, now a second fund faces the same fate.