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:
Baby Bunting Group Ltd (ASX: BBN)
A notice of initial substantial holder shows that Bennelong Australian Equity Partners has been buying this baby products retailer’s shares. According to the notice, over the last four months the fund manager has been building a position and buying shares in the price range of $4.1376 to $4.6999. This has led to Bennelong Australian Equity Partners accruing a total of 7,725,888 shares, which gives it a ~6.05% stake in the company.
The Baby Bunting share price is currently changing hands in the middle of the above price range at $4.48. This could be a sign that Bennelong Australian Equity Partners still sees a lot of value in its shares at this level. So, it may not be too late for investors to follow its lead.
Kogan.com Ltd (ASX: KGN)
A notice of change of interests of substantial holder reveals that Fidelity Management & Research (FMR) has been topping up its position in this ecommerce company. According to the notice, Fidelity picked up a total of 1,262,686 shares between 21 July and 16 September. The fund manager was buying shares in the range of $16.93 to $21.61. These purchases increased its holding to a total of 6,615,924 shares, which equates to a 6.26% stake.
Fidelity appears to have been impressed with Kogan’s stellar sales and profit growth during the pandemic. Pleasingly, this continued in August with the company recently reporting gross sales growth of 117% and adjusted EBITDA growth of over 466% for the month. I think that following Fidelity’s lead and buying shares for the long term would be a smart move.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Challenger Limited and Super Retail Group 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.
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