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:
Estia Health Ltd (ASX: EHE)
A notice of change of interests of substantial holder shows that Perpetual Limited (ASX: PPT) has been topping up its position in this aged care operator during the pandemic. The fund manager has been buying shares over the last three months, but particularly at the height of the pandemic. Perpetual bought as low as 91 cents in March and has been buying as recently as last week for $1.59 per share.
In total the fund manager picked up almost 3.5 million shares, increasing its holding to 35,259,135 shares. This equates to a 13.49% stake in the company. It appears to see value in Estia Health’s shares after a 40% pullback over the last 12 months.
Viva Leisure Ltd (ASX: VVA)
A notice of initial substantial holder reveals that WAM Capital Limited (ASX: WAM) has been buying this health club operator’s shares since the middle of May. This follows a significant sale of shares during March and April when Viva Leisure’s future looked bleak because of the pandemic.
But with gyms now reopening and social distancing restrictions easing rapidly, the fund manager appears confident in the future. The notice reveals that WAM owns a total of 3,764,233 shares across its funds, which represents a 5.25% stake in the company. Earlier this month Viva Leisure raised $25 million to strengthen its balance sheet and pursue future acquisitions. Judging by its shareholding, WAM appears to believe this is a good strategy for the company to take.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.