WAM Microcap Limited (ASX: WMI) is a listed investment company (LIC) run by the high-performing Wilson Asset Management team. Since its launch in June 2017 last year its portfolio has returned 28.4% before fees. Clearly the investment team know how to identify an opportunity.
Therefore, I thought it was interesting that together WAM Capital Limited (ASX: WAM), WAM Research Limited (ASX: WAX) and WAM Microcap became substantial shareholders of PSC Insurance Group Ltd (ASX: PSI).
PSC Insurance is an insurance broker that specialises in business insurance. Its share price hasn't done much over the past nine months but its underlying business has been growing very nicely.
Underlying revenue and underlying earnings before interest, tax, depreciation and amortisation (EBITDA) and the EBITDA margin have all steadily increased since 2013.
With a net cash position at the half-year result and the company announcing UK expansion, PSC is in a good position to continue acquisitive growth.
It just announced a $7 million acquisition of Turner Insurance Services in Leicester in the UK and previously announced a $33 million investment in B P Marsh & Partners plc, meaning it has almost 20% of the business.
PSC management advised that the company is well positioned for future growth and the second half remains the larger contributor to full year earnings.
Foolish takeaway
I'm always interested in moves that top fund managers make. PSC Insurance is steadily expanding in the UK, which seems to be a good move considering the uncertainty surrounding Brexit is creating good value opportunities to buy British businesses at cheaper prices.
Although I personally won't be buying shares of PSC, I think it could be an interesting opportunity.
