Trading Places: Here are this week’s substantial holder movements

Trading Places is Stockhead’s weekly recap of substantial holder movements among ASX small caps, and fund managers feature prominently in this week’s edition.

Substantial shareholders are shareholders holding 5 per cent or more of a company’s shares and 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 and any change in their holdings while they remain above 5 per cent.

Buyers

Fresh from an earnings upgrade, Australian Ethical Investment (ASX:AEF) bought into Palla Pharma (ASX:PAL).

Palla makes opiate pills using water – a practice the company did not invent but claims to do better. It says it needs just 50-60 people to make 80 tonnes of product compared to 100-150 people.

Spheria Asset Management’s sole move was increasing its holding in esports play Ainsworth Game Technology (ASX:AGI) to 6.23 per cent.

Regal Funds Management made several moves including becoming a substantial holder of Medical Developments International (ASX:MVP). The company sells products that optimise asthma treatment.

Mineral sands play Image Resources (ASX:IMA) welcomed Paradice Investment Management, which now owns 5.37 per cent.

UniSuper bought into Adairs (ASX:ADH), taking a 5.16 per cent stake, very shortly after the retailer announced a major acquisition.

Mining investor Chris Wallin bought more of Venus Metals Corporation (ASX:VMC) and he now owns 17.28 per cent.

Sellers

It’s been a successful 2019 for almond grower Select Harvests (ASX:SHV) on its balance sheet and the share market. However, Alex Waislitz’s Thorney Holdings sold below the susbtantial holder threshold.

One of Redbubble’s (ASX:RBL) key backers, San Francisco private equity fund Osmium Partners, followed its founder in cashing out of the stock.

Finally, Regal Funds Management reduced its stake in two stocks that have done well — opthamology biotech Opthea (ASX:OPT) and cloud communications platform Whispir (ASX:WSP).

One stock that has not gone well is satellite play Speedcast (ASX:SDA) due to repeated revenue and earnings downgrades. Tennessee-based Southeastern Asset Management cut its stake to 6.7 per cent.