Trading Places: Wilson Asset Management has backed these 2 recent IPOs to be late bloomers
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Trading Places is Stockhead’s recap of the buys and sells of ASX small cap shares by fund managers and other famous investors over the last fortnight.
Specifically, Stockhead tracks substantial shareholder movements, being shareholders 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.
Wilson Asset Management is one of the more notable ASX focused fund managers, owning shares in many ASX companies as well as a portfolio of ASX-listed Listed Investment Companies (LICs).
In recent days Wilson Asset Management became a substantial holder of two ASX shares. First, mineral drilling contractor DDH1 Limited (ASX:DDH) which it crossed the threshold with multiple trades adding up to $1.1 million on May 26, and second floral group Lynch (ASX:LGL) which it became a substantial holder of with a $2.3 million trade.
Both companies are relatively new ASX listees that have under-performed since listing but are nearing their IPO prices once more. And Wilson Asset Management has a history of picking late-blooming IPOs having taken a punt on Dusk Group (ASX:DSK) before it went on a run.
Wilson’s boss Geoff Wilson increased his personal stake in food company Maggie Beer (ASX:MBH), buying $1.4 million in shares, and Ellerson Capital bought another $1.38 million. The pair own approximately 5.5 per cent each.
As Oliver’s Real Foods (ASX:OLI) fights for financial and ASX survival, two shareholders made $600,000 trades. Pure Asset Management and Gelba – the investment vehicle of non-executive director Martin Green – upped their stakes.
Mobilicom (ASX:MOB) received its promised $3.65 million investment from Israeli pension fund Psagot which is nearly 19 per cent of the company.
And Australian Ethical upped its stake in edtech 3P Learning (ASX:3PL) to nearly 8 per cent.
As the takeover of telco stock Vocus (ASX:VOC) looms, Yarra Management opted to cash out, parting ways with $34 million in shares.