Woodford’s £6.4bn income and £8.6bn higher-income funds are 17th and 18th respectively in the UK equity income and growth sector from January 1 to September 25, according to figures from Lipper.
However, Dampier says this is due to the manager’s long-term, bearish economic outlook and stocks that match this view – namely those with strong balance sheets and stable business models such as AstraZeneca and GlaxoSmithKline.
Dampier says: “Since March, these have been left behind as investors anticipated a V-shaped economic recovery and bought more cyclical stock. Woodford thinks this is highly dangerous and likens the situation to that of 1999/2000 when internet stocks took off and left the solid, dependable companies behind.”
Dampier adds: “He has actually raised the dividend on his funds this year while many other equity income funds have cut theirs by as much as 25 per cent.”