Trading Places: Guess how much this shareholder made out of Rhythm Biosciences in just 4 months
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If you to know where fund managers and investors (the famous and the unknown alike) are putting their money, we’ve been keeping track of substantial holder buys and sells.
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.
This week’s most notable trade was a sale made by a shareholder of Rhythm Biosciences (ASX:RHY) which is developing a colorectal cancer detection kit that it hopes to be cheaper, more effective and less invasive than the faecal test run by the government.
Rhythm listed in 2017 and for a couple of years it wasn’t clear if the company was going anywhere. But that’s changed this year and shares have rocketed from under 5 cents to over $1.10.
One of Rhythm’s largest shareholders, Loumea Investments (a private investment company in Melbourne owned by Richard Vom), lodged its latest substantial holder notice earlier this week. Over the last four months it has parted with 2,754,346 shares for over $1.2 million.
Loumea has long been a Rhythm shareholder but last topped up its holding with a purchase of six million shares back on September 3 for $360,000 – at 6 cents per share. The former parcel would have cost $165,261 – representing a gain of over 600 per cent.
Other notable sales included Nero Resources Fund ceasing to be a substantial holder of uranium play Peninsula Energy (ASX:PEN) and Auscap Asset Management cutting its stake in New Zealand Media and Entertainment (ASX:NZM) to just under 13 per cent.
Moving on to the buyers and this week’s most notable buy was made by Perennial Value Management.
It became a substantial holder of smart hearing device creator and retailer Nuheara (ASX:NUH), owning just under 8 per cent.
Perennial quickly accumulated the stake through two trades back on January 7 totalling over $6 million.
Alex Waislitz’s Thorney Opportunities now owns 11.36 per cent of fintech QuickFee (ASX:QFE) , which helps lawyers and accountants get paid.
Australian Ethical increased its stake in cloud platform Urbanise (ASX: UBN) to 9.9 per cent.