Invested in WAM Capital (ASX:WAM) shares? Here’s what to watch in 2022

What does WAM Capital have in store for 2022?

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The WAM Capital Limited (ASX: WAM) share price hasn’t had the best year in 2021 to date. Since the start of the year, WAM Capital shares have gone backwards by roughly 0.22%.

Of course, there has been WAM Capital’s generous dividend to help ease the pain. WAM shares have paid out 15.5 cents per share in dividends this year. That would have added a good 7% or so to those returns (plus some with franking). But even so, that doesn’t take away from the fact that the S&P/ASX 200 Index (ASX: XJO) has eaten WAM Capital’s lunch, seeing as the index itself has gained more than 9.8% (plus dividends) in 2021 thus far.

WAM Capital is one of the largest Listed Investment Companies (LICs) on the ASX. As a LIC, it is a company that invests in other ASX shares for the benefit of its own shareholders.

So if you hold WAM Capital shares, what should you look out for in 2022?

This ain’t WAM’s last Christmas…

Well, to start with, here’s some of what WAM Capital founder and chair Geoff Wilson said on the company’s plans for FY2022 during WAM Capital’s annual general meeting last month:

In FY2022, we have positioned [WAM’s] portfolio into companies that can generate strong top line organic growth irrespective of the economic outlook. We are positive on the medium-term economic and earnings outlooks, despite the headwinds of new coronavirus variants. Our long-standing methodology of investing in undervalued growth companies with a clear catalyst for a share price rerating, remains the central tenet of our process.

Currently (well, as of 30 November), some of WAM Capital’s top holdings included Life360 Inc (ASX: 360), Pushpay Holdings Ltd (ASX: PPH)Aristocrat Leisure Limited (ASX: ALL)Brickworks Limited (ASX: BKW)Breville Group Ltd (ASX: BRG) and ARB Corporation Limited (ASX: ARB).

But WAM Capital has recently been venturing into new territory as a LIC. Rather than just holding positions in individual shares, WAM Capital has stepped up its game over the past year or two. Over FY2021, WAM bought out the Concentrated Leaders Fund (ASX: CLF). As well as the Contango Income Generator Limited (ASX: CIE) and Amaysim Australia (ASX: AYS). It is also presently in the process of attempting to purchase the PM Capital Asian Opportunities Fund Ltd (ASX: PAF). Although, this is now caught up in what is arguably an increasingly messy bidding war.

So it seems that as WAM Capital’s size has grown (it’s now worth more than $2 billion), so too has its investing horizons. Perhaps investors can expect additional complete fund and company takeovers going into the 2022 calendar year.


Should you invest $1,000 in WAM Capital right now?

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Brickworks, Life360, Inc., and PUSHPAY FPO NZX. The Motley Fool Australia owns and has recommended Brickworks and PUSHPAY FPO NZX. The Motley Fool Australia has recommended ARB Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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