Well-known stockpicker Neil Woodford is one of the UK’s biggest names in stockpicking – which is when a fund manager analyses the potential of different stocks to try to decide whether or not they will make a good investment.
He was widely celebrated for previous success, and backed until the suspension by huge investment supermarket Hargreaves Lansdown – but both now face questions over how business was conducted amid criticism from investors.
This does make me cross. Let’s talk about the differences between The Woodford Fund and Apex Algorithms.
1. He is FCA regulated, Apex Algorithms cannot be regulated because it is a product the FCA has no interest in. Even with regulation where is the client protection?
2. He has invested his client’s money into illiquid assets and failed to retain enough to return monies when needed by his clients. Apex Algorithms holds its client’s money in cash apart from the brief periods (hours) where we have placed a bet.
3. He has returned 0.36% over the past 5 years. Apex Algorithms has returned 154% tax-free over the same period (actually it is significantly higher if you take into account the weekly compounding effect). P.S. We made 0.42% profit last week.
4. He continues to charge management fees. Apex Algorithms never charges fees we simply share in the profit (or loss) each week.
Despite all this these fund managers are held up as pillars of the financial markets when all they are doing is gambling (and in some cases not very successfully) with their clients’ money.
So, there is the similarity. We are both gambling, just that we admit to it and are somewhat more successful. Is it time to look at your portfolio?
If you would like to know more about Apex Algorithms or would just like to comment on my blog then please email me at firstname.lastname@example.org call 07950 951567.
Paul Northcott is the Managing Director for Apex Algorithims.