As I’ve mentioned here before, I like to keep an eye on substantial shareholder notices.
This is because it gives you an idea of which shares large investors, asset managers, and investment funds are buying or selling.
Two notices that have caught my eye today are summarised below. Here’s what these fund managers have been buying:
IDP Education Ltd (ASX: IEL)
A notice of initial substantial holder reveals that Capital Group Companies has been buying the shares of this provider of international student placement services and English language testing services. Capital Group is an American financial services company. It is one of the world’s oldest and largest investment management companies with over US$2 trillion in assets under management.
According to the notice, Capital Group has been building a position in the company over the last six months and was buying shares as recently as Wednesday. It now owns 14,201,994 IDP Education shares, which equates to a 5.1% stake in the company. With its share price down 33% from its 52-week high, Capital Group appears to see a lot of value here.
TechnologyOne Ltd (ASX: TNE)
Another notice of initial substantial holder reveals that VicSuper has been taking advantage of a recent pullback in this enterprise software company’s shares to top up its position. VicSuper, which was established in 1994, is one of Australia’s leading profit-to-member super funds.
According to the notice, VicSuper now owns 17,953,423 TechnologyOne shares. This represents a 5.63% stake in the company. The TechnologyOne share price is down almost 12% since the release of its half year update last month. Investors were a touch underwhelmed by its 6% lift in sales and profits during the six months ending March 31. Nevertheless, judging by its purchases, this fund manager appears confident in TechnologyOne’s growth prospects and has seen this pullback as a buying opportunity.