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 are summarised below. Here’s what these fund managers have been buying:
Catapult Group International Ltd (ASX: CAT)
A notice of change of interests of substantial holder reveals that ICE Investors has been buying more of this sports analytics and wearables company’s shares. According to the notice, the Melbourne based fund manager has increased its holding by approximately 3.9 million shares following a series of purchases between 28 January and 1 April.
Its most recent purchase came on the latter date when it picked up 1.9 million shares for a total of ~$3.68 million. This equates to an average of ~~$1.94 per share, which compares to the current Catapult share price of $2.12. These purchases have increased ICE Investors’ stake from 5.03% to 6.77%.
ICE Investors aims to invest in ASX listed franchise companies with a sustainable competitive edge. Judging by its investment, Catapult appears to tick a lot of boxes for it.
Webjet Limited (ASX: WEB)
Another notice of change of interests of substantial holder reveals that Ausbil has been increasing its stake in this online travel agent. According to the notice, the leading boutique fund manager has added almost 7 million shares to its position since 23 February.
This means the fund manager now has a total of ~29.2 million shares, which equates to an 8.6% interest in the company. This is up from 6.6% previously.
Ausbil was buying shares as recently as 1 April when the Webjet share price was fetching $5.28. So, with its shares trading only a fraction higher than this level today, it may not be too late to follow this fund manager’s lead.
One broker that would support this is Ord Minnett. Its analysts currently have a buy rating and $5.85 price target on Webjet’s shares.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Catapult Group International Ltd. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Catapult Group International Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.