When it comes to investing there are no bonus points for originality. While it may be nice to discover a unique idea before anyone else does, at the end of the day what really matters is the profit you make from the idea – no matter where that idea came from.
At the end of each month I like to scout around through the investment updates of a select group of leading, outperforming fund managers in search of stock ideas.
One fund manager I regularly review is Pengana Capital. Pengana has generated a return of 12.3% per annum (pa) since the inception of its Australian Equities Fund on 1 July 2008 – that's outperformance of over 3% pa against the Australian All Ordinaries Accumulation Index.
Given Pengana's track record of outperformance it's a manager worth watching. Here are three interesting portfolio moves the fund made during July.
Buying in
The share price of leading electronics retailer JB Hi-Fi Limited (ASX: JBH) touched a 52-week low during July, which looks like a well-timed point for Pengana to have established a new position in the stock.
Selling Down
Pengana also reported that during July the fund trimmed its holdings of Caltex Australia Ltd (ASX: CTX) and Tatts Group Limited (ASX: TTS). While we don't know the exact reason for the sell down, we do know that both of these stock hit 52-week highs during the month. Pengana probably viewed these new highs as an opportunity to lock-in some gains possibly on account of the share prices reaching points close to their assessment of fair value.
