Following a recent meeting with Invesco Perpetual’s departing income star, Dampier said Woodford is concerned there are several unresolved aspects to the region’s banking crisis, and he warned it could rear its head once more this year.

Woodford (pictured) said the effects of quantitative easing (QE) are now diminishing, noting that, despite the multi-billion dollar programmes carried out by central banks, many issues remain unsolved.

“Woodford does not rule out the possibility of a re-run of the eurozone crisis, as he believes the banking crisis has largely been swept under the carpet by European politicians and is yet to be resolved permanently,” Dampier said.

Woodford, who is quitting Invesco Perpetual in April to launch his new venture with investment firm Oakley Capital, added temporary factors have created the appearance of a bullish economy, but this is a misleading picture.

These factors include rising consumer debt, which has helped increase consumption, and PPI windfalls, equivalent to a large tax cut, but which are now largely spent.

“Woodford is bemused by how rapidly commentators have turned around from being doomsayers to euphoric. He highlighted what he believes is a veneer of a bullish economy, pushed by temporary factors he does not believe are sustainable,” Dampier said.

Woodford also told Dampier redemptions from his funds have been “very low” with most retail investors remaining “loyal”. Industry data providers said early last month around £2bn had left his Income and High Income funds following the announcement of his exit.