I like to keep an eye on substantial shareholder notices. This is because these notices give 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:
Computershare Limited (ASX: CPU)
A notice of change of interests of substantial holder shows that AustralianSuper has taken advantage of Computershare's share price weakness to increase its stake. According to the notice, the super fund has picked up approximately 8 million of this share registry company's shares over the last four months. This has lifted its holding to a total of ~41.1 million shares, which represents a 7.59% stake in the company.
The Computershare share price is down 27% from its 52-week high. Judging by its purchases, this has left its shares trading at a level that AustralianSuper thinks is attractive. One broker that would agree with this is Morgans. Last month the broker put an add rating and $13.90 price target on the company's shares.
Medibank Private Ltd (ASX: MPL)
A notice of initial substantial holder reveals that Perpetual Limited (ASX: PPT) has been building a position in this private health insurer over the last few months. Perpetual started buying in February when Medibank's shares were trading at $3.06. It then continued to purchase shares in March when they fell to ~$2.60 and has consistently added to its holding since then. Its last recorded purchase came on 11 June for $3.01. In total Perpetual now owns 140,759,820 shares, which represents a 5.11% stake in the company.
As with AustralianSuper and Computershare, it appears as though the fund manager sees value in Medibank's shares after they fell 18% from their high. Affordability issues have been weighing heavily on the company over the last 12 months, but AustralianSuper doesn't appear concerned.
