4 investment themes to send your share portfolio higher

Credit: Cabe Jefferies

Shareholders in listed investment Company (LIC) WAM Capital Limited (ASX: WAM) have once again enjoyed relative share price outperformance compared with the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) over the past 12 months, with WAM Capital showing a gain of just over 1% compared with a fall of around 2.5% in the index.

The longer-term outperformance is even more impressive with WAM Capital’s share price up close to 50% over the past five years and nearly 190% over the past ten years. In comparison, the index has eked out gains of just 12% over both the past five and ten years.

With outperformance like that, WAM Capital’s portfolio can be a good source for stock ideas. Here are a four key takeaways regarding “Investment Themes and Trends” from a recent presentation provided to investors…

1. Australia’s fitness obsession

Active wear has replaced casual wear and Australian consumers are increasingly active and interested in their health and wellbeing and prepared to spend. RCG Corporation Limited (ASX: RCG) is one stock that is benefitting from this trend.

2. Women having babies later in life

As lifestyles and demographics change, demand for assisted reproductive services has grown as women chose to have children later in life. Three companies benefitting from this trend are Monash IVF Group Ltd (ASX: MVF), Virtus Health Ltd (ASX: VRT) and Primary Health Care Limited (ASX: PRY).

3. Western Sydney’s surge

WAM Capital singled out Western Sydney as “the largest long-term growth corridor in Australia with enormous potential and minimal existing infrastructure.” One stock they see as a long-term beneficiary is Qube Holdings Ltd (ASX: QUB).

4. Growing Chinese consumption

While the mining boom has come to an end, the free trade agreement is set to provide a new set of export opportunities into China. With research showing Chinese demand for Australian health products is very strong companies such as A2 MILK FPO NZ (ASX: A2M), Bellamy’s Australia Ltd (ASX: BAL) and Blackmores Limited (ASX: BKL) are well placed to benefit.

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Motley Fool contributor Tim McArthur owns shares in Monash IVF Ltd and Virtus Health Ltd. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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