The leading investors from Wilson Asset Management (WAM) have shared two compelling S&P/ASX 300 Index (ASX: XKO) shares on their radar.
WAM operates several listed investment companies (LICs). Some, like WAM Leaders Ltd (ASX: WLE), focus on larger companies.
Meanwhile, WAM Capital Limited (ASX: WAM) targets "the most compelling undervalued growth opportunities in the Australian market".
But does WAM have a claim of stock-picking pedigree? The WAM Capital portfolio has delivered an investment return of 15% per annum since its inception in August 1999. That's before fees, expenses, and taxes. This gross return outperformed the All Ordinaries Total Accumulation Index (ASX: XAOA) return of 8.4% per annum over the same timeframe.
With that in mind, here are the two ASX 300 shares WAM Capital has outlined in its recent monthly update.
Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)
Fisher & Paykel is described as a "leading designer, manufacturer and marketer of products and systems for use in acute and chronic respiratory care, surgery and the treatment of obstructive sleep apnoea".
At the end of November 2022, the ASX healthcare share was one of the largest ASX shares in the WAM Capital portfolio.
Last month, the ASX 300 share announced its FY23 half-year result. For the six months to 30 September 2022, it saw total operating revenue of $690.6 million. While net profit after tax (NPAT) of $95.9 million beat market expectations.
The investment team said it was pleasing that the business stated that it expects FY23 second-half revenue to be higher than the first half.
There was also a suggestion that the backlog of consumables that were purchased by hospital customers during the COVID-19 pandemic "is beginning to clear".
Over the last month, the Fisher & Paykel share price has gone up almost 20%.
Perenti Ltd (ASX: PRN)
WAM describes Perenti as a 35-year-old business that is one of Australia's largest mining services companies. It provides surface and underground mining and drilling services.
After "favourable" movements in the Australian dollar and improving conditions for operations and commercially, the ASX 300 share announced an upgrade to its FY23 earnings guidance last month.
Perenti is now thinking that FY23 revenue will be between $2.6 billion to $2.7 billion. While earnings before interest, tax and amortisation (EBITA) could be between $215 million to $230 million – this is ahead of market expectations.
The fund manager concluded:
We continue to remain bullish on the outlook for Perenti as the business embarks on its 2025 strategy to focus on its core capabilities.
