When it comes to founder-led companies, many ASX investors like to keep a close tab on whether that founder has been buying or selling shares in their own company. If a founder is indeed buying up shares, it can be a strong signal that it might be a good time to follow suit. Conversely, many investors don't like to see their founder selling shares, as it can be perceived as a vote of no confidence. Luckily for ASX investors of WAM Capital Limited (ASX: WAM) shares, its founder has been going down the former path of late.
WAM Capital is one of the largest and most popular listed investment companies (LICs) on the ASX. It was founded by the eponymous Geoff Wilson's Wilson Asset Management (the WAM in WAM Capital) back in 1999. Since then, its portfolio has returned an average of 15.8% per annum (before fees).
WAM Capital's ASX founder is buying shares
But eagle-eyed investors might have picked up on a recent trend. According to a series of ASX notices, Wilson has been buying WAM Capital shares, and quite enthusiastically too. According to WAM's ASX releases, Wilson (through subsidiaries) has bought six parcels of WAM Capital shares over May thus far (which works out to be one buy every two days on average).
These were all buys ranging from between $20,000 and $69,000.
It comes after Wilson did a similar rate of selling shares over March. The difference is that Wilson was selling WAM Capital shares when they were being priced at around $2.25. Most of the more-recent buys were instead revolving around the $2.05 mark. That's your classic 'buy low, sell high' play. Wilson might continue his buying spree going forward too. At the current time, WAM Capital shares are worth $2.02.
WAM only releases the net tangible asset (NTA) value of its shares once every month. The last disclosed NTA of WAM Captial shares was $1.73 per share. But that was as of 31 March. Given the volatility we've seen on the ASX over April and now into May, this value has probably fluctuated quite a bit.
So Geoff Wilson clearly thinks his own WAM Capital is a buy right now. He's certainly been buying at any rate. No doubt WAM Capital's ASX investors will appreciate this show of confidence.
