The plunging S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) which has endured a horrendous start to the 2016 calendar year would appear to have encouraged some fund managers to take some risk off the table.
SAI Global Limited (ASX: SAI) is a leading supplier of standards and compliance procedures to businesses both domestically and overseas. The share price ended flat in 2015 and highly-regarded fund manager Paradice Investment Management has sold down below the 5% substantial shareholder threshold.
Listed fund manager Australian Ethical Investments Limited (ASX: AEF) enjoyed a stellar 2015 with its share price gaining close to 50%. The group recently lodged a notice stating that the fund manager had ceased to be a substantial shareholder in financial services software provider GBST Holdings Limited (ASX: GBT).
Fellow listed fund manager Perpetual Limited (ASX: PPT) decided to sell down its holding in private health insurer NIB Holdings Limited (ASX: NHF). At one point Perpetual held a stake of over 10% in NIB. However as of January 5 the group was no longer a substantial holder.
It hasn't been a particularly good start to listed life for online homewares and furniture retailer TEMPLE WEB FPO (ASX: TPW). After floating at $1.10, the shares are currently changing hands for 76 cents. Leading fund manager Bennelong appears to have changed its view on the stock with the manager recently ceasing to be a substantial holder.
Meanwhile, Bennelong appears to be positive on the outlook for entertainment and leisure business Ardent Leisure Group (ASX: AAD). After a rocky 2015 which saw the group's share price lose around 20% it's possible that some value has emerged. Bennelong, presumably sees upside from these levels with the group increasing its stake to 5.2%.
There is a stock market saying which advises that insiders can have many reasons for selling shares in their company but only one reason for buying.
In many ways this too could be a fair warning when observing movements on the share register by outside investors too.
There could indeed be a number of reasons why a fund manager sells shares in a company, including to meet unit holder redemptions, due to a macro view of the market, or to take profits.
In contrast, there is arguably only one reason why a stock picking fund manager will buy shares in a company—because he or she believes they will go up!
