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:
Adore Beauty Group Ltd (ASX: ABY)
According to a notice of initial substantial holder, Challenger Ltd (ASX: CGF) has been buying this online beauty products retailer’s shares over the last few weeks. The notice reveals that the annuities company has picked up 4,929,496 shares between 23 October and 24 November.
Its last purchase came on Tuesday when it bought 617,768 shares for a total consideration of $4,132,868. This represents an average of $6.69 per share, which is just a touch lower than its IPO price of $6.75. Challenger’s purchases mean that it now owns a 5.24% stake in the company. The Adore Beauty share price is trading at $6.40 this afternoon.
Galaxy Resources Limited (ASX: GXY)
According to a notice of change of interests of substantial holder, Ausbil Investment Management has been topping up its holding in this lithium miner. Ausbil, which is one of the world’s leading boutique fund managers, has added over 5.3 million shares to its holding since its last update in April. Its most recent purchase was 134,699 shares for $176,176.61 on 29 October. This equates to an average of $1.31 per share. This purchase lifted the fund manager’s holding to a total of 37,917,460 shares, which represents a 9.26% stake in Galaxy.
Those recent purchases have proven to be a masterstroke by Ausbil. This afternoon the Galaxy share price is up over 9% to $2.14. This is a whopping 63% higher than its purchase price of 29 October. The lithium miner’s shares have surged higher on optimism that the worst is over for the price of the battery making ingredient thanks to increasing electric vehicle demand.