An Industrial Heat Investor Identified: Woodford Patient Capital Trust (UK Public Company)

Thanks to Nils Österström on Facebook for finding this story:

There’s a publicly traded British investment fund called Woodford Patient Capital Trust (UK Stock symbol WPTC) which, according to an article on the Citywire website, has invested a portion of its capital in Industrial Heat, LLC. The company explains its objective with the the fund:

“To achieve long-term capital growth through investing in a portfolio consisting predominantly of UK companies, both quoted and unquoted. The Company will aim to deliver a return in excess of 10% per annum over the longer term. (Note: this is a target only and not a profit forecast and there can be no assurance that it will be met.)”

The Citywire article mentions that WPTC invests mainly in early startups, and according to this article, it has taken a position in Industrial Heat:

WPCT’s unquoted investments look pretty interesting. Most are biotech companies but one that caught my eye was Industrial Heat, a company that is trying to make money from low energy nuclear reactions (aka cold fusion). If it can pull this off it should be worth a fortune, but I’m guessing there will be plenty of sceptics out there.

Industrial Heat is one of WPCT’s unquoted US investments. The US venture capital market has been really strong for a while now but UK investors haven’t really been able to access a listed vehicle to play this theme.

Since most individual investors are not able to buy shares in Industrial Heat, if you bought shares in WPTC, you would own a little bit of Industrial heat — along with shares in all other companies that WPTC invests in. I have not been able to determine how much of Industrial heat is owned, but it’s not a large percentage of the fund — see here for the top 10 holdings.

  • The best time to buy stocks is when the market is scared and there is “blood in the streets.” Buy low when people want to sell, and sell high when people want to buy.

    • Obvious

      Oh, like now?

      • Yep

      • Roland

        You might wait till the CSI 300 tests the 2150 level, which at the current rate of unraveling might not take long, before committing significant funds as this level will truly reflect ‘blood in the streets’.

    • bachcole

      I think that investing in Industrial Heat qualifies within that larger category of high risk “blood in the street”.

      • Nigel Appleton

        I keep about 5% of my investments in high risk equities – when they do pay off, they pay off big, and anyway I can afford to lose it (though I would sob quietly)
        So far, I’m showing a smallish net gain on this 5%

    • Nigel Appleton

      Yes indeed. I managed to catch the rebound with CFD trades on the FTSE100 and the Dow.
      I’ll open a bottle of the ’96 Pauillac tonight!

    • Artbaron

      Contact the license holders if you want to invest. They may be after some funds …

  • builditnow

    Anyone know if there Is there any way the little guy can invest in Industrial Heat or Leonardo?

  • Uncle Bob

    There is a very good reason why I never invest money in a trust fund that I don’t control myself
    The above article is the main reason.
    In the arena of financial investments, there are people making decisions about investments in areas they have not the slightest clue about.

    I would be sorely miffed if I had money in an investment trust and found they had put my money into this.
    From all indications at this point, I think you would have better odds betting it on the dogs.

    Yes, I know,. just my opinion. You can all laugh at me when (as you possibly think) it all comes good and Mr. Rossi becomes the richest person in the world.

    • Parrott Jon

      I understand that Mr. Rossi has been nominated for the Nobel Prize in physics this year and the US Patent office issued him a patent today August 25.
      Maybe Woodford knows something after all, and that’s why he is the best fund manager in the UK and you are not.

  • Nigel Appleton

    Neil Woodford is generally reckoned to be a very astute fund manager. A LOT of money followed him when he set.up this new fund.
    That being said I doubt he’s invested enough.in IH to affect his unit price if lenr fails to deliver.

    • bachcole

      What would happen if Industrial Heat did deliver?

      • Nigel Appleton

        If it’s a 20 million investment, then the value of the trust wouod rise by(20 million x whatever factor the IH investment increases by)
        All else being equal

  • Dave

    1.72% of the trust is in Industrial Heat (As of July 31st 2015)

    • bachcole

      That is actually quite a large percentage for a trust. I would take it that these people are serious. Assuming that that number is correct.

  • oceans

    Uncle Bob its called investment diversification, Neil Woodford the astute fund manager may have made another excellent investment based on information his analysts have been presented.

    • Nigel Appleton

      Precisely so. Over the years Mr Woodford and his team(s) have made shedloads of money for their investors, regularly beating the benchmarks.

  • Daniel Maris

    You don’t know what due diligence has been undertaken do you? So why are you getting so worked up about this. If you knew that due diligence had shown a real and substantial LENR effect wouldn’t you be a bit more relaxed about this? Why ARE you so worked up about other people’s investment decisions?

    • Warthog

      Which is precisely why I have my IRA investments in various mutual funds…..they can (and do) do a far more thorough job of due diligence that I could possibly do.

  • Parrott Jon

    Mr. Rossi received a patent from the US Patent office today, and I understand that he is nominated for the Nobel Prize in Physics this year. Maybe Woodford knows something you don’t

    • clovis ray

      Hi, parrott Jon
      You have a link to info about his nomination, we would be very pleased, to know

  • Parrott Jon

    It’s a US$50 million investment

    • ajb

      The latest balance sheet of the trust shows net asset value of GBP815m=1.28bn USD. At 1.72% this makes the investment worth $22m (I registered at the site and confirmed these figures). I wonder how much Industrial Heat has raised since the initial seed and what the company is now valued at. If this $22m is the amount that was raised it will be very useful for the ongoing R&D and first production.

      Woodford is possibly the most recognised and respected UK mutual fund manager today with a very strong track record. He quit a big name asset manager not long ago to strike out on his own, a venture that seems to be going very well.

      The only thing that tempers my enthusiasm a bit about buying the shares is that even if the valuation goes 10x it only translates into a 17% gain, much of which could be eaten up by a failure in a larger biotech venture in the trust. Also, it trades at a 10% premium to the underlying net asset value due to his investment acumen, which may be deserved but is in contrast to a more typical discount of a few percent in this segment of the market.

      For the ECat getting the backing of such a renowned investor will be great for raising additional funds from others.

  • LarryJ

    Note that the stock symbol shown in this article has a typo. The actual symbol is WPCT. If you look it up on Finance.yahoo then the symbol is WPCT.L

  • LarryJ

    Note that the stock symbol shown in this article has a typo. The actual symbol is WPCT. If you look it up on Finance.yahoo then the symbol is WPCT.L

  • GreenWin

    The recent patent award should profit this investment greatly. Perhaps not in the near term bottom line – but over the life of the investment, having a US patent on even a single component of the E-Cat will be highly valuable. This suggests Mr. Woodford is a remarkably astute investor willing to lead rather than get out of the way.

  • Nigel Appleton

    I keep about 5% of my investments in high risk equities – when they do pay off, they pay off big, and anyway I can afford to lose it (though I would sob quietly)
    So far, I’m showing a smallish net gain on this 5%

  • Dave

    Trust also recently bought shares in Drax which operates the UK’s largest coal fired power station. Half the output will be biomass fired by 2017.

  • Dave

    The trust also has a stake in Drax which owns the UK’s biggest coal/biomass fired power station.
    So any commercial break through in LENR would probably bad for Drax; but then again maybe not if they can change the boilers to Ecats…