Trading Places: The dives fund managers were making post earnings season
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Want to know where fund managers are putting their money? 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.
This fortnight’s list of substantial holder buys depicts trades occuring in the wash-up of earnings season. Several of the stocks in this edition’s list reported solid results despite COVID-19.
Auscap Asset Management topped up its stake in motorbike retailer Motorcycle Holdings (ASX:MTO) to nearly 8 per cent. The company reported strong trading since May, although when Victoria’s latest lockdown was first announced it estimated it would take a $9m hit.
Vinva Asset Management and Perennial Value Management both became substantial holders, with the pair now owning over 10 per cent of the company between them.
City Chic Collective (ASX:CCX) has been one of the better performing retailers in 2020 because compared to many of its peers it has a more substantial online presence. Pendal has accumulated a stake of just over 5 per cent.
Other traders took a punt on stocks that have seen tough times but might have better days ahead. One Funds Management bought more shares in tracking tech stock Bluechiip (ASX:BCT) two months after the company lost a key client.
Cancer test developer Rhythm Bioscience (ASX:RHY) has lagged for several months, with progress slower than investors would have liked.
But chairman Otto Buttula now owns 13.61 per cent after participating in the company’s capital raising. Existing substantial holder Richard Vom also participated and now owns 6.85 per cent.
Serviced offices provider Victory Offices (ASX:VOL) saw demand dry up with people forced to work from home. But it has been telling shareholders it anticipates demand will return and Collins Street Asset Management obviously agrees, having bought a 7.8 per cent stake.
A significant portion of sales were in retail and ecommerce stocks.
Challenger cut its stake in Redbubble (ASX:RBL), which is a pure online play targeted at independent artists.
Yarra Funds Management sold enough of its shares in furniture store Adairs (ASX:ADH) to fall below the 5 per cent threshold.
Similarly, Eley Griffiths fell below 5 per cent with the selldown of its shareholding in fellow furniture seller Nick Scali (ASX:NCK)