The rally inspired by the U.K. Conservative Party's election victory has come too late for Neil Woodford, whose former flagship fund is being liquidated just as his bets on small and midsize U.K. firms start to pay off.
Stocks that were the biggest holdings in the LF Woodford Equity Income Fund rose as much as 15.8% Friday after Prime Minister Boris Johnson's party roused the markets with a historic win.
Analysts predict a surge in international investment in U.K. markets now that Mr. Johnson has the majority he needs to push his Brexit deal through Parliament. The pound rose as much as 2.7% against the dollar while the FTSE 250 Index, which includes many of Woodford's picks, posted the biggest rise in more than nine years.
The problem is that Mr. Woodford is no longer in charge and the fund is being wound up. Almost 80% of the publicly listed securities held by the fund, now renamed the LF Equity Income Fund, have been sold since mid-October, according to a statement from the administrator, Link Fund Solutions Ltd.
A spokesman for Woodford Investment Management declined to comment.
Homebuilders were some of the biggest beneficiaries of the post-election boost in equity values in London. Barratt Developments, which was the fund's largest holding as of June 30, rose by as much as 14.4% Friday, its biggest intraday gain for more than 10 years. Taylor Wimpey, another of the fund's top 10 holdings, rose as much as 15.8%.