The stock in question is Coutryside Properties.
He commented, ‘Countryside is a well-managed property construction and development business which has a close relationship with the public sector, specialising in improving social housing. We see the company as extremely well placed to deliver strong growth.’
The veteran investor added that he has also been buying more shares in Malin and IP Group and the consumer finance investment business, Honeycomb Investment Trust.’
Woodford then turned his thoughts to the conditions in the wider markets.
He said, ‘Global equity markets appeared determined to grind higher in May. There was some better economic data to support this, primarily in Europe, but we don’t believe the recent signs of stronger growth are a forerunner of significantly better fundamentals. The UK stock markets’ strength has piggy-backed this benign global equity environment, despite heightened domestic uncertainty around the UK’s general election and talk of a hard Brexit. The UK market does at least appear reasonably well underpinned by valuation, particularly when considering the absence of alternatives from an income perspective.’
The fund manager concluded his comments with the remark that, ‘Turning to the investment backdrop, we remain cautious on the outlook for the global economy despite the market’s lingering optimism on growth. Meanwhile, we continue to warm to the prospects for the domestic economy, in contrast to an increasingly bearish consensus. The UK election result doesn’t change the fundamentally positive backdrop for the UK economy, in our view. Indeed, with its implications for looser fiscal policy and a softer Brexit, the UK economic outlook appears to have improved still further and the portfolio is positioned to benefit from this outcome over the long term.’
The £10 billion CF Woodford Equity Income fund is the second best performer out of 78 funds in the IA UK Equity Income sector over the past three years.