Investors have pulled almost £2bn out of Neil Woodford’s signature fund since May.
The Woodford Equity Income fund has seen assets under management drop from a peak of £10.15bn in May to £8.2bn in December as investors showed their disappointment in the manager’s performance, the Financial Times reports.
Some of the fund’s key holdings including Provident Financial and Allied Minds lost value in 2017, while this year Woodford’s bad luck continued as Capita shares dropped 47 per cent last week.
A spokesperson for Woodford told the FT: “Neil’s funds have at times underperformed the broader market because of a contrarian view and [this is] not the first time his funds have suffered redemptions.
“He believes there are inherent risks in inflated asset prices. By sticking to the investment principles that have underpinned his successful 30-year career, he believes he will continue to deliver the level of returns that investors expect on a three-to-five-year view.”