Star fund manager Neil Woodford said “exceptional” growth in online real estate agent Purplebricks Group (LON:PURP) contributed to a first half recovery in his Woodford Patient Capital Trust PLC (LON:WPCT) business.
The trust saw its share price rise 7.0% to 97.30 at the end of June and to 104.2p at the end of July, bringing it back above the 100p price at which it floated in London over two years ago.
Net asset value increased 8% to 100.73p by the end of the half year and rose to 104.47p by 31 July.
Online real estate agent Purplebricks was the star turn after its share price more than trebled during the half year. Woodford said Purplebricks made rapid progress and expects “significant growth” in the years ahead.
He made no remarks on a BBC report that Purplebricks had made misleading claims to customers.
The BBC Watchdog programme reported that Purplebricks had continued to claim in promotional emails to customers that they could save an average of £4,158 by using the company, despite the Advertising Standards Authority last year telling the firm to stop making the statement as it could prove misleading.
Elsewhere in the Woodford Patient Capital Trust’s portfolio, the company saw a strong contribution from US biotechnology businesses Theravance Biopharma and Protean as well British gene-editing business Horizon Discovery.
Allied Minds, an intellectual property company, was the biggest drag on returns with its shares falling 64% after culling its portfolio and replacing chief executive Chris Silva with Jill Smith.
However, Woodford remained confident in Allied Minds, saying: “We never believed that all of Allied Minds' subsidiaries would succeed and we have built our positive investment case for the stock around the value that we see in its portfolio of more successful subsidiaries.”
He is also confident on the long-term outlook for Woodford Patient Capital Trust as he believes the portfolio is in “excellent shape”.
“It is pleasing this has started to come through in terms of performance, but the share price and net asset value progress we have seen in recent months is insubstantial in the context of what, I believe, lies ahead."