Neil Woodford cuts stake in AI firm as suspension deadline approaches
Neil Woodford cut his stake in artificial intelligence firm Sensyne Health as the deadline approached for the suspension of his flagship fund to be formally reviewed.
The former star trader has been offloading assets to rebalance his Equity Income fund, which was suspended last month following a spike in withdrawals.
Read more: Woodford trust cuts debt to calm investors
The deadline for the 28-day suspension to be reviewed is tomorrow.
Sensyne, an AI healthcare firm which was founded by former science minister Lord Draysen, said Woodford Investment Management has sold more than a quarter of its 20 per cent stake to Baillie Gifford.
Sensyne listed on the London Stock Exchange’s AIM market in August last year, and has a market capitalisation of £160.71m.
Woodford Equity Income fund was suspended last month after a rush of investor redemptions, including a £250m request from Kent County Council.
The embattled fund manager said he would use the time to reduce the fund’s exposure to illiquid and unquoted stocks down to zero.
He has come under fire since the fund was frozen for failing to suspend management fees. Both the Financial Conduct Authority and the treasury select committee are investigating the circumstances surrounding the suspension.
Read more: Carney warns that Woodford-style funds are built on a lie
Last week Woodford’s listed Patient Capital trust revealed plans to cut debt and strengthen its board in a bid to reassure investors.
The trust announced that it would reduce debt to below 10 per cent of the value of its holdings, from a current debt level of 16.8 per cent.