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:
GUD Holdings Limited (ASX: GUD)
According to a change of interests of substantial holder notice, Aware Super has been taking advantage of weakness in the GUD share price to top up its position.
The notice reveals that the super fund has picked up just under 1.4 million shares since the beginning of August. This lifted its holding in GUD to a total of ~6.21 million shares, which is the equivalent of a 6.54% stake.
The most recent purchase came on 15 September when the company paid ~$5.69 million for 530,716 shares. This represents an average price of $10.71 per share.
Unfortunately for Aware Super, the GUD share price has continued to tumble since then. On Friday, its shares were trading within sight of its 52-week low at $10.19.
Though, one broker that would be supportive of these purchases is Citi. Earlier this month the broker upgraded GUD’s shares to a buy rating with a $12.30 price target.
Nitro Software Ltd (ASX: NTO)
A notice of initial substantial holder reveals that Copia Investment Partners has become a substantial shareholder of this document productivity company.
According to the notice, the fund manager has built up a holding of 9,973,091 shares, which is the equivalent of a 5% stake. Copia has been buying shares over the last few months but went into overdrive this week. One of its purchases was for 780,399 shares at an average price of $3.51.
The Nitro share price is currently fetching $3.68, which is just short of its 52-week high of $3.78. However, based on this fund manager’s purchases, its team appear confident that new highs will be reached in the near future.