Trading Places: Cybersecurity stocks are in hot demand by fund managers

Want to know which stocks fund managers have been buying? We’ve been keeping track so you don’t have to.

Trading Places is Stockhead’s recap of the substantial holder movements among ASX small caps over the last fortnight.

Substantial shareholders are those holding 5 per cent or more of a company’s shares — these can be directors, individual investors, or institutional investors.

Shareholders are required to announce to the exchange when they cross above or below the 5 per cent threshold, as well as any change in their holdings while they remain above 5 per cent.

Buyers

The cybersecurity sector has had a booming 2020 as companies new to operating remotely recognise its importance in light of the impact cyber attacks can have.

A handful of fund managers were buying into small caps in this sector. SG Hiscock topped up its stake into Archtis (ASX:AR9) to over 7 per cent.

Regal Funds Management made further purchases in Family Zone Cyber (ASX:FZO), taking its stake to over 10 per cent.

US-based Topline Capital also bought more of its cybersecurity holding, Dropsuite (ASX:DSE), and now has over 13 per cent.

AI-based risk mitigation platform Houston We Have (ASX:HWH) also witnessed some buying activity too. It’s latest advisory board member, Steve Picton, now has a 6.45 per cent stake. Picton is the founder of goTalk, which merged with Tel.Pacific.

Among other trades, Wilson Asset Management and Bennelong Australian Equity Partners topped up their stakes in discount chain The Reject Shop (ASX:TRS). Between them the pair now own over 20 per cent of the company between them.

Spheria Asset Management topped up its stake in Seven West Media (ASX:SWM) and now owns just over 8 per cent.

Capital Di, a Mauritius-based drilling consultant, now owns 13.95 per cent of Graphex Mining (ASX:GPX) — a company moving from Tanzanian graphite to Malian gold.

Sellers

Nearly a year since he retired from the company that bears his name, Kip McGrath sold some shares of Kip McGrath Education Centres (ASX:KME).

He completed a $2m sale to Regal Funds Management, which now owns 5.89 per cent of the tutoring centre.

Vinva Asset Management ceased to be a substantial holder in Myer (ASX:MYR). Pendal cut its stakes in City Chic Collective (ASX:CCX) and Adairs (ASX:ADH).

Wilson Asset Management was another seller of Adairs.

Australian Ethical Investment (ASX:AEF) reduced its holdings in Pharmaxis (ASX:PXS) to just below the 5 per cent threshold.