City’s biggest Purplebricks backer faces tougher times

Traditional agents who are unhappy about the rise of the UK’s largest hybrid agency Purplebricks may find succour in the declining fortunes of its biggest backer, investment fund manager Neil Woodford (pictured, right). His company Woodford Investment Management has been investing millions of pounds into Purplebricks from 2014 onwards and publicly backed the agent’s ‘innovative approach’. Many of his firm’s key funds now include exposure to its stock, in one case of up to 7%. But the highly-successful City figure, whose own website describes him as one of the most influential UK investment managers of his generation, has been facing a stickier wicket than normal in recent months. Woodford specialises in property and has invested heavily in many leading UK property firms including, as well as Purplebricks, Taylor Wimpey, Barratt, Countryside, Crest Nicholson and several commercial property REITS. Only two months ago one of Woodford’s most successful funds, the LF Woodford Equity Income Fund, reported that its “strongest performance came from hybrid estate agent Purplebricks, which reported interim results that showcased the very positive progress it is making across the board”. But, as commentators at both The Times and The Financial Times have noted recently, the City thinks otherwise and…