Trading Places: The investors that got in and out of substantial holdings this week
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Trading Places is Stockhead’s weekly wrap of ASX small cap substantial holder filings. Substantial holders 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.
While the most common institutional investors in ASX small caps are fund managers, sometimes they are fellow small caps. As we reported yesterday, lithium miner Alliance Mineral Assets (ASX: A40) now has Galaxy Resources (ASX: GXY) as its largest shareholder with 12 per cent.
This came after Galaxy invested $22 million in Alliance’s $32 million capital raising. As a result Alliance has the funds for its Bald Hill lithium project; but both company’s executives have hinted at more extensive co-operation between the two companies in the future.
Also on this week’s list was Crusader Resources (ASX: CAS) becoming substantial holders in Meteoric Resources (ASX: MEI), possessing 5.62 per cent.
While Crusader paid $1 million cash, it was compensated with 50 million Meteoric shares as well – escrowed for 12 months. If project milestones are met Crusader may consequently receive more cash or shares. Crusader has been suspended for several months but is close to recommencing trading, in the latter stages of a capital raise.
Fund managers were also active this week. Paradice Investment Management spent $528,000 increasing its stake in industrial services provider Boom Logistics (ASX: BOL) to 7.59 per cent.
Regal Funds Management made a few purchases, the most notable being an increasing of its stake in optometry-tech company Opthea (ASX: OPT) to 9.84 per cent. It has spent $6.3 million in the last year and $767,000 in the last week on Opthea shares.
It also became substantial holders in jeweller Michael Hill (ASX: MHJ), with a 5.06 per cent stake and in Alderan Resources (ASX: AL8) with a 5.23 per cent stake. In both instances it had been shareholders for some months but just crossed the 5 per cent threshold this week.
Telstra Super are a super fund for current and former Telstra employees. Recently, it has accumulated a 5 per cent stake in MaxiTrans (ASX: MXI) due to a $2.8 million investment.
Foreign investors also made some purchases this week. Singaporean-based Silversea Asset Management bought a 10.84 per cent stake in tracer-technology stock Dotz Nano (ASX: DTZ). Toronto fund manager Burgundy Asset Management became a substantial holder in iSelect (ASX: ISU) with a 5.32 per cent stake.
Remember that Catholic university in Indiana that bought into Amaysim (ASX: AYS) in March? Since then, it’s bought even more of the company, now holding 7.67 per cent.
A number of fund managers’ sales appear to be profit taking because of substantial spikes this year. Regal Funds Management ceased to be substantial holders of buy now pay later stock Zip Co (ASX: Z1P).
Its latest round of sales, of around 600,000 shares in the last week, took it below 5 per cent. This would have netted it over $1.8 million because of its current share price above $3.
Another was Airlie Funds Management which decreased its holdings in Nick Scali (ASX: NCK) to 6.04 per cent. Airlie sold nearly $7 million of shares in recent weeks.
Despite the financial situation of Oliver’s Real Foods (ASX: OLI) appearing rosier; IOOF now only hold 2.95 per cent when earlier this year it held as much as 15 per cent. It began selling out when Oliver’s was in dire straits, but have continued to sell even after last week’s good news.
It also sold holdings in EML Payments (ASX: EML) and People Infrastructure (ASX: PPE).
The Coalition’s election win has pundits suggesting the property market slump has ended but Perpetual sold $668,000 of its stake in real estate agency McGrath (ASX: MEA), now holding 7.48 per cent.
Paradice Investment Management cut its stake in Queensland oil explorer Senex Energy (ASX: SXY) to 5.36 per cent having sold $4.3 million this year.
The biggest seller this week was Eagle Health Holdings (ASX: EHH) director Zhang Mingwang. On Monday he sold $7.5 million of his stake in the company going from 38 per cent to 28 per cent.