One of the keys votes of confidence for a business is when management buy shares of their own company.
WAM Global Limited (ASX: WGB) is the newest listed investment company (LIC) launched by the high-performing Wilson Asset Management (WAM).
The key difference with this LIC is that it's the first to focus on shares outside of the ASX. Some people may think is leaving WAM's home advantage field, but I think the winning investment process can be applied to overseas shares as well.
Geoff Wilson put in a substantial amount of money at the start of WAM Global's life and this morning it was announced the trust he is a beneficiary of bought another $154,982.88 worth of shares. He is close to having $6 million invested in WAM Global. That's a big vote of confidence!
Whilst the ASX has a lot of shares to choose from, there are far more opportunities listed across the rest of the world. Indeed, Australia only makes up about 2% of the global share market.
WAM Global has invested in businesses it thinks are undervalued growth shares, with some recognisable names like American Express, gaming company Hasbro and consumer goods business Reckitt Benckiser.
Whilst the first month or so since listing wasn't a fantastic start, I believe over the long-term WAM Global will comfortably outperform its benchmark after fees. At the end of July 2018 it still had 38.4% of the portfolio as cash – leaving ample ammunition for additional investment opportunities as well as protection.
Foolish takeaway
If Geoff Wilson is happy to invest at the current price then I'd be happy to do so as well. Whilst I already own some WAM Global shares I would like to accumulate more over time, hopefully it doesn't start trading at as high of a premium as the other leading WAM LICs.
