Given the strong share price performance of leading online media companies REA Group Limited (ASX: REA) and SEEK Limited (ASX: SEK) over the past 12 months, those searching for a bargain could be excused for not paying close attention to these two top quality companies.
That could well be a mistake though…
While REA has rallied around 20% in the past year and SEEK has soared nearly 44% and both stocks are trading near their respective record, all-time highs there is still a case for buying these two companies given their superior business economics and long-term growth potential.
In fact, that's exactly what one leading fund manager has been doing!
Manny Pohl who made his name as the founder of fund manager Hyperion Asset Management where he oversaw an impressive portfolio track record now heads up the recently listed investment company (LIC) Barrack St Investments Ltd (ASX: BST).
According to Barrack St's December quarterly investment update, the LIC increased its exposure to both REA and SEEK during the quarter. These two companies now account for approximately 25% of the entire portfolio which goes to show the high level of conviction the manager has in these two companies.
Rounding out the remaining top five positions within Barrack St's portfolio is Platinum Asset Management Limited (ASX: PTM), Bendigo and Adelaide Bank Ltd (ASX: BEN) and Carsales.Com Ltd (ASX: CRZ). These are all great businesses and they could all be well worth investors considering adding to their own portfolio (at the right price of course), however, there is one stock that The Motley Fool is even more excited about…
