The Motley Fool

Top fundie reveals ASX stock picks

When Wilson Asset Management gives its monthly portfolio updates to the market, many investors sit up and listen (this writer included). For a company that runs six successful listed investment companies (LICs), including one that has delivered a return of 16.9% per annum for the last two decades, its investment ideas often prove to be worth their weight in gold.

So what was Wilson doing in September?

In the WAM Capital Ltd (ASX: WAM) portfolio, Wilson reports that top recent performers have included Myer Holdings Ltd (ASX: MYR) and Clover Corporation Limited (ASX: CLV). Myer’s online sales growth and recent profit results have seen WAM take an interest, while Clover’s penchant for discovering new nutritional products has also caught eyes.

Meanwhile, at WAM Leaders Ltd (ASX: WLE) – the LIC that focuses on the largest ASX blue chips – management is very keen on Ramsay Health Care Limited (ASX: RHC) shares at the moment, citing their new acquisitions and growth trends. Another recent highlight was Santos Ltd (ASX: ATO).

The newest LIC in the Wilson stable, WAM Global Ltd (ASX: WGB), has just announced its first fully franked dividend. Whilst Brexit and the US–China trade war are making things difficult for this internationally focused LIC, WAM Global is confident in alcohol baron Diageo and aeroplane manufacturer Airbus, while being pleased with the performance of CDW Corporation as well.

To the small space now and WAM Microcap Ltd (ASX: WMI) has been firing on all cylinders, delivering a return of 22.2% per annum since its listing in June 2017. A big recent winner has been City Chic Collective (ASX: CCX) but the company also holds Myer and Eclipx Group Ltd (ASX: ECX).

Last but certainly not least is WAM Research Ltd (ASX: WAX). WAM Research invests in a similar way to WAM Capital, but with a deeper focus on their investments’ fundamentals (hence the name). WAM Research also has a stake in Myer but was also buoyed by the performance of Brickworks Limited (ASX: BKW) over the last month or two. This LIC also holds Xero Ltd (ASX: XRO) and Harvey Norman Holdings Ltd (ASX: HVN).

Foolish takeaway

I think it pays to try and learn from the best investors out there, and Wilson Asset Management is always a source of good ideas, in my opinion. WAM and WAX are both trading for significant premiums to their underlying assets today, but all other WAM LICs look to be at or under their fair value.

While you're here, why not check out our top picks for October right now?

NEW. Five Cheap and Good Stocks to Buy in October

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield...

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.

CLICK HERE FOR YOUR FREE REPORT!

Sebastian Bowen owns shares of WAMGLOBAL FPO. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Clover Limited and Xero. The Motley Fool Australia has recommended Brickworks and Ramsay Health Care Limited. 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 Scott Phillips.

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.

CLICK HERE FOR YOUR FREE REPORT!