Woodford Equity Income Fund Invested in Industrial Heat after 2.5 Years of Due Diligence (Update: ‘Long and Rigorous’ Due Diligence Process)

Thanks to pg for finding this from the Woodford Equity Income Fund website. This British investment fund (publicly traded) which has invested in Industrial Heat. Tom Darden said in his recent interview with Fortune magazine that Woodford Investment Management had made a “much larger investment” into Industrial Heat than Cherokee Investment Partners’ own $10 million investment.

Someone on the Woodford funds’ website posted that they were very unhappy to see the fund investing 1.72% of the fund invested into industrial heat because cold fusion appeared to violate the laws of known physics. Paul Farrow of Woodford responded:

August 18, 2015 at 9:19 pm
Hi John,

Many thanks for your comment and we’d like to reassure you that we do follow a thorough due diligence process for all our investments, irrespective of their size or the fund they are invested in.
With regard to Industrial Heat, we were, and have been, very aware of the scepticism about this technology. We have undertaken a rigorous due diligence process that has taken two and half years. The company is currently working with numerous scientists and is acquiring both the technology and teams required to maximise the potential of this, and other, new energy technologies.

The company recently said that it is willing to invest time and resources to see if this technology might be an area of useful research in its quest to eliminate pollution. We share this quest for what we believe will be a significant development and exploitation of new energy sources.


So it sounds like Woodford Investment Management have done some serious homework on Industrial Heat and have found that they like what they see. It’s interesting to read from this comment that IH is looking at other new energy sources — this would be in addition to Rossi’s E-Cat — which is something Tom Darden has said they are doing.

UPDATE: The LENR discussion we are so used to seeing has now moved over to the Woodford Capital Management site, with familiar names commenting, and some Woodford personnel responding. Here are a couple of exchanges.

September 29, 2015 at 10:03 pm
Can you publish some results of your due diligence on Industrial Heat?

September 30, 2015 at 9:34 am
Hi Alain,
It would be inappropriate for us to share our due diligence, but please be reassured that this investment is the result of a long and rigorous process.
Kind regards

September 30, 2015 at 7:50 pm
@Mitchell Fraser-Jones
@Paul Farrow

Perhaps you could explain why it is inappropriate to share, at least in general terms, your two and half year process of due diligence.

October 1, 2015 at 6:35 am
@Mary Yugo: We are keen on transparency and already disclose significantly more than our peers. We draw the line at revealing our proprietary research and due diligence on any stock we invest in, however.

More https://woodfordfunds.com/focus-on-long-term/#comment-6294″>here (scroll down)

  • bkrharold

    I find it difficult to understand the motivations MY has to continue the cusade against LENR and Rossi in particular. Myself and most people on ECW believe in a better tomorrow through the promise of abundant clean cheap energy. If it is not money then can MY be motivated by a the belief in a worse tomorrow with a gradual descent into despair and hopelessness?

  • bkrharold

    I am more impressed by the two and a half years, and rigorous due diligence, than the actual amount invested, which is not insignificant in itself. That means they began evaluating IH before the start of the current test at the customer site. They must also have been privy to the operating details eg COP and SSM, and any problems that have occurred so far. I was surprised to see Mary Yugo name involved in the discussion on the woodfordfunds site. I believe this is a synonym for a group of trolls financed by the Koch Brothers. As for Krivit, I don’t want to say anything unkind, but he seems to be waging a personal vendetta against Andrea Rossi for his own personal reasons.

    • no paid troll.
      true belief is best motive.

      If Mary should be paid it is by Rossi and darden, to hide their clear disruptive achievements…
      the results of MY&other believers work is that the mass of people is still uncertain, and prefer to believe in wikipravda.

      It will explode just more violently…

  • Omega Z

    When the housing bubble burst many property values were halved. It is these properties that Rossi invested in(In the Miami Area). Within a few years, his investments will double in value. Perhaps you think he should have put it into 1% return CD’s in a 2% inflationary environment?
    You invest to make money, not lose value.

    Note, There were hundreds of foreign investors vying for these same properties(China being a major investor).

    “Is anybody here wondering why Rossi is investing HIS millions in real estate?”

    NO. I wonder why you wonder.

  • Agaricus

    I think that Liberty N is referring to Cherokee’s stake of $10M through their dedicated shell company, Industrial Heat LLC.

    Woodford has now invested a further $27M (see Mats Lewan, below), presumably in IH, i.e., a total of some $37M is available (also presumably) to cover continuing development, initial manufacture and product launch.

    • artefact

      To quote Mats: “Right, missed that. In Woodford Patient Capital Trust, IH is listed at
      number 22 at 1.73 percent of a total of £844.8mln which makes £14.6mln
      or about $22mln. Thus a total invested in IH of $49mln.”

      That makes it $59M in total together with Cherokee.

      • Agaricus

        Thanks for the correction. That’s not the sort of money that would be invested without a high degree of confidence.