There are lots of different ways to come up with investment ideas. Most investors utilise at least one of the following – newspaper articles, official company announcements, investor conferences, newsletters, word-of-mouth, company meetings, the list goes on…
Another useful process for identifying stocks to do further research on is to watch what other successful investors are buying.
Here are six stocks which top fund managers have recently been increasing their holdings of:
- Intueri Education Group Ltd (ASX: IQE) – Greencape Capital increased its holding to 8% – The New Zealand-based company operates a range of private tuition facilities. It is viewed by the market as being in a high growth sector.
- Freedom Foods Group Ltd (ASX: FNP) – Perpetual Limited (ASX: PPT) increased its holding to 10% – Operating in the allergen-free and healthy foods sector, Freedom is a niche provider with a strong pipeline of growth opportunities.
- ASG Group Limited (ASX: ASZ) – Ausbil Investment Management became a substantial holder with 5% – While many IT service providers have been languishing, ASZ has been bucking the trend recently with some investors viewing its exposure to cloud services as particularly appealing.
- Oz Minerals Limited (ASX: OZL) – BlackRock Group became a substantial holder with 5.4% – Improvements in production, a strong balance sheet and exposure to gold are likely behind BlackRock's interest in Oz.
- Echo Entertainment Group Ltd (ASX: EGP) – Bennelong Funds Management increased its holding to 6% – The share price of the owner and operator of Sydney's Star Casino has been on a strong run over the past year, but there could be more growth in store for the group if it wins the rights to expand its operations in Brisbane.
- Aristocrat Leisure Limited (ASX: ALL) – Ellerston Capital became a substantial holder with 5.2% – With connections to gaming mogul James Packer, this fund manager no doubt has a deep understanding of the business model and growth outlook for leading pokies machine maker Aristocrat.
