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 this fund manager has been buying:
Kogan.com Ltd (ASX: KGN)
According to a change of interests of substantial holder notice, UK based Hosking Partners has taken advantage of recent weakness in the Kogan share price to increase its stake in the online retailer. The notice reveals that the fund manager has lifted its stake to ~6.51 million shares, which is the equivalent of a 6.09% stake.
Hosking Partners’ most recent purchase came on 3 September when it picked up 315,553 Kogan shares for just under $3.5 million. This represents an average of $11.00 per share. Since then, the Kogan share price has pulled back to $10.50, giving investors an opportunity to buy at a decent discount to what this fund manager paid.
Credit Suisse appears to believe this is a buying opportunity. Late last month it put an outperform rating and $14.06 price target on Kogan’s shares.
Universal Store Holdings Ltd (ASX: UNI)
According to a notice of initial substantial holder, WAM Capital Limited (ASX: WAM) has become a substantial shareholder of this fashion retailer. The notice reveals that WAM and its affiliates now own a total of 3,852,539 shares. This gives the fund manager an interest of 5.26%.
WAM was buying shares as recently as earlier this week. On 7 September, it picked up 250,000 Universal Store shares for a total consideration of $1.82 million. This equates to an average of $7.31 per Universal Store share.
The good news for WAM is that one leading broker still sees plenty of upside for the Universal Store share price. Last month Macquarie put an outperform rating and $8.90 price target on the company’s shares.