Wilson Asset Management (WAM) has built a reputation for its high-quality listed investment companies (LICs), many of which have been able to deliver market-beating returns through both capital appreciation and robust dividend income.
Therefore, I think when WAM releases its monthly updates on which shares are being bought and sold through its LICs, it’s worth at least paying attention.
Let’s have a look at how some of WAM’s LICs have positioned themselves in 2020
WAM Capital Ltd (ASX: WAM)
WAM capital is the flagship Wilson LIC and focuses on the mid-cap space. It has managed to deliver an average performance of 16.7% per annum (before fees) since 1999. Recent winners for this LIC in December include mining manufacturer Codan Limited (ASX: CDA) and advertising kingpin oOh!Media Ltd (ASX: OML).
It looks as though WAM Capital has trimmed its exposure to Aristocrat Leisure Limited (ASX: ALL) and Vocus Group Ltd (ASX: VOC) whilst increasing its holdings in CSR Limited (ASX: CSR) and WAAAXer Appen Ltd (ASX: APX). This LIC is holding a cash position of 17.1%, so take from that what you will.
WAM Leaders Ltd (ASX: WLE)
One of WAM’s newer LICs, WAM Leaders focuses on purely large-cap stocks, usually within the ASX 100. December winners for WAM Leaders include gold miner Northern Star Resources Ltd (ASX: NST) and tolling-company Atlas Arteria Group (ASX: ALX).
This LIC has apparently also unloaded some Aristocrat shares, as well as property giant Goodman Group (ASX: GMG). In their stead, it appears WAM Leaders is finding value in ASX bank shares, with National Australia Bank Ltd (ASX: NAB) and Westpac Banking Corp (ASX: WBC) both making their way into WLE’s top 20. South32 Ltd (ASX: S32) is also a notable addition. WAM Leaders has a much lower cash position of 7.9% in December.
WAM Research Ltd (ASX: WAX)
WAM Research – WAM’s second flagship fund – notably didn’t make too many changes this month, with Sonic Healthcare Limited (ASX: SHL) the only addition to WAX’s top 20 (at the expense of Vocus Group). Codan was also a winner for WAM Research, as was Service Stream Limited (ASX: SSM).
It’s interesting that WAM Research also has a relatively high cash position – sitting at 20.2% for the month of December.
I always think its worth checking out what other investors are finding in the markets today – especially at their current ‘all-time high’ levels. Hopefully these movements can give you some insights into your own portfolios and how ‘the professionals’ are positioning themselves for 2020.
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Motley Fool contributor Sebastian Bowen owns shares of National Australia Bank Limited. The Motley Fool Australia owns shares of Appen Ltd and National Australia Bank Limited. The Motley Fool Australia has recommended oOh!Media Ltd, Service Stream Limited, and Sonic Healthcare 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.