Funds

Buyer of cut-price Woodford fund shares flogs them for 1135% more days later

Buyer of cut-price shares from failed fund turns a huge profit in days.

Further insult has been added to injury for investors in the failed Woodford Equity Income fund as the recent buyer of cut-price shares from the fund sold them days later at a price that was 1135% more than the purchase price!

Earlier in the month, Link, the administrators of the fund revealed that a variety of assets had been sold to Acacia Research in a cut-price deal in order to help investors get some more of their cash back.

But new information has come to light at just how cut-price these assets may have been. According to reports, Acacia bought some equities as part of the deal and quickly sold them off raising £128m. And one of these equities in the quick-sale was in an AIM share called Midatech Pharma.

Understandably, investors who are already nursing heavy losses from the highly publicised fund are even more outraged. Not only at the fact that the assets were sold off too cheaply but in the fact that the buyer’s share price has increased by over 50% in the past month since the purchase.

Incredibly, Acacia purchased £65,000 worth of stock in Midatech Pharma from the Woodord fund at a price of c.1.7p per share. BUT days later, they sold their shares in the AIM-listed company for 21p per share – generating more than £871,000.

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