Trading Places: Which fund managers have bought, sold and been diluted this week?
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In Trading Places, Stockhead analyses the week’s substantial holder filings of ASX small-caps. Substantial shareholders are defined as those holding 5 per cent or more of a company’s shares and these could be directors, individual investors or institutional investors.
Shareholders are required to announce to the exchange when their shareholding becomes substantial, when they have ceased to be substantial shareholders or any change in their holdings above 5 per cent.
The most peculiar move this week was when German investment group Delphi Unternehmensberatung Aktiengesellschaft (AG) took a 11.83 per cent stake in gold explorer Kingston Resources (ASX: KSN). The purchase came in the company’s recent $4 million capital raising and cost Delphi $2.6 million.
While another major investor, Winchester Investments, took part, it has not crossed the substantial threshold.
As we covered earlier this week, Alliance Resources (ASX: AGS) chairman Ian Gandel bought another $1.5 million shares in the company and now owns 34 per cent of the gold explorer. His stake is now worth around $4.7 million.
Regal became a substantial holder of Prescient Therapeutics (ASX: PTX) and Family Zone Cyber Safety (ASX: FZO) spending $226,000 and $1 million respectively for 5.79 per cent and 6 per cent stakes respectively.
But only a few days after buying into Prescient, Regal’s holdings were diluted below the substantial holder threshold thanks to a capital raise.
Energy monitoring subscription service Bidenergy (ASX: BID) has skyrocketed from 5 cents to 90 cents since January 2018. Tiga Trading, a subsidiary of the Thorney Investment Group (run by Richard Pratt’s son-in-law and Collingwood president Alex Waislitz) became a substantial holder with a 5.85 per cent stake. It has bought $1.1 million this month, as well as $4.1 million in between late February and early April.
Freehill Mining (ASX: FHS) director Samuel Duddy now has a 9.29 per cent stake in the company. Duddy first bought shares in July last year and a $421,000 buy earlier this month took him over the 5 per cent line.
Spheria Asset Management took a 5.3 per cent stake in New Zealand Media & Entertainment (ASX: NZM) – the owners of the New Zealand Herald and several New Zealand radio stations. Spheria have been buying all year but in the last week its holdings became 5.3 per cent thanks to $587,000 in purchases in the last few weeks.
IOOF, through the fund co-operated with Perennial, took a 5 per cent stake in Uniti Wireless (ASX: UWL) and a 5.56 per cent stake in RedBubble (ASX: RBL). It also bought $210,000 in Otto Energy (ASX: OEL) stock but were diluted from 11.58 per cent to 10.51 per cent.
Canadian asset manager 1832 Asset Management bought $880,000 of Apollo Consolidated (ASX: AOP) shares and its holdings increased from 6.03 per cent to 7.70 per cent.
It has been a year to forget for Blue Sky Alternative Investments (ASX: BLA) and its investors. In March last year, Fidelity’s 9.42 per cent stake was worth up to $85 million with the share price $11.75.
But now the share price is only 21 cents and Fidelity has sold net 700,000 shares this year. After its most recent sales it now owns an 8.37 per cent stake that is worth only $1.3 million.
While billion dollar businesses are usually beyond the scope of Stockhead, it was only a few weeks ago Zip Co (ASX: Z1P) was a small cap.
Regal first bought in late last year buying 20 million shares for $16 million between August and December, then another $12.8 million in the first quarter of this year. It built up a 7.79 per cent in the company worth over $88 million.
But across the month of April it sold around 5 million shares, reducing its stake to 6.21 per cent, netting it over $11 million.
Fidelity ceased to be substantial holders in Starpharma (ASX: SPL). It held a 5.95 per cent stake but after selling $218,000 worth of shares it was left with a 4.97 per cent stake.
Here are all the substantial holders whose holdings changed because of dilutions – meaning their stakes decreased because new shares were issued. In some cases they may have actually bought more shares, but newer companies buying in reduce their share of the firm.