A lot of retail investors like to know what shares Australia’s leading professional fund managers are buying as the theory goes that if they’re good enough for the fund managers then they could be good enough for your average investor.
Wilson Asset Management is one of the most well regarded asset managers in the local market and has an impressive long-term track recording of beating the S&P/ ASX200 (ASX: XJO) with its stock picks.
On July 12 2019 the group updated the market with some of its funds’ performance including that of its $1.3 billion Australian equity focused flagship fund WAM Capital Limited (ASX: WAM).
Generally at a fund manager the larger the fund by capitalisation the more prestigious it is and the more likely its management is to be entrusted to the most senior, accomplished, or ‘star’ fund managers.
As such it’s worth having a peek at some of the top holdings of a flagship fund at one of Australia’s leading asset managers.
Here are a few of its holdings in no particular order.
Afterpay Touch Group Ltd (ASX: APT) is the buy now, pay later start-up that tends to divide the bulls and bears as it’s growing fast, but unprofitable, and already sports a valuation close to $6 billion. WAM’s in the bull camp.
Credit Corp Group Limited (ASX: CCP) has been another stupendously performing mid-cap share over the long term. It’s a debt collection business in that it buys bundles of bad consumer debts off a bank or telco at a steep discount, before attempting to collect it to turn a profit.
Myer Holdings Ltd (ASX: MYR) looks a turnaround or ‘value investing’ bet as the department store is still very profitable and cheap on conventional valuation metrics. However, it faces plenty of competition and demands that it invests more heavily in its stores to stop the continuous fall of revenue and profits.
CSL Limited (ASX: CSL) is a core holding of many Australian fundies thanks to its strong competitive position and impressive track record of growth. It also offers investors overseas exposure and the tailwinds of ever growing spends on the healthcare sector.
Invocare Limited (ASX: IVC) is the funeral services operator that has attempted a growth by acquisition strategy recently, while delivering some organic growth. Today it announced another acquisition. It also has an impressive long-term track record of dividend and profit growth.
Corporate Travel Management Ltd (ASX: CTD) is the corporate travel platform provider that has also grown by acquisition and organically over the past 5 years or more. The stock has come off the boil recently on the back of some bad media, but at $21.90 it seems Wilson’s thinks it offers good value. All eyes will be on its statement of cashflows when it hands in its full year report next month.
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Tom Richardson owns shares of AFTERPAY T FPO, Corporate Travel Management Limited, and CSL Ltd.
You can find Tom on Twitter @tommyr345
The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended InvoCare Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019