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:
Mach7 Technologies Ltd (ASX: M7T)
A notice of initial substantial holder reveals that Australian Ethical Investment Limited (ASX: AEF) has been building a position in this medical imaging data management solutions provider this year. According to the notice, after picking up just over 2.1 million shares last week, the ethical fund manager now owns a total of 11,857,136 Mach7 shares. This equates to a 5.45% stake in the company.
Australian Ethical Investments appears to have been pleased with Mach7's decision to acquire Client Outlook earlier this month. Client Outlook is a leading provider of an enterprise image viewing technology called eUnity. Management notes that this acquisition expands its addressable market from US$0.75 billion to US$2.75 billion.
McPherson's Ltd (ASX: MCP)
A notice of change of interests of substantial holder shows that Challenger Ltd (ASX: CGF) has been buying more of this beauty and household products company's shares. It has added a total of 1,135,019 shares to its holding in June, bringing its total interest to 6,502,799 shares. This equates to a total stake of 6.06%.
McPherson's shares are only trading at a small discount to their 52-week high, which appears to indicate that Challenger is confident in the company's future. It may even believe that the company could outperform expectations in FY 2020. In April, McPherson's released a trading update which revealed that it had experienced strong demand for many of its products during the pandemic.
