Fund managers are always on the lookout for ASX (blue-chip) share opportunities to deliver market-beating returns. The team at Wilson Asset Management (WAM) have highlighted two ideas that could be attractive.
WAM Leaders Ltd (ASX: WLE) is a listed investment company (LIC) that targets larger ASX shares to generate returns. It takes an active approach to buying and selling shares – it's not a passive index fund.
I think active investing can produce outperformance over the long term, particularly when it comes to the S&P/ASX 200 Index (ASX: XJO), which is largely dominated by a few ASX bank shares and ASX mining shares.
At the end of October 2026, the WAM Leaders portfolio performed almost 3% better on average per year than the S&P/ASX 200 Accumulation Index (ASX: XJOA), before fees, expenses and taxes, since the LIC's inception in May 2016. That shows WAM Leaders knows how to pick stocks.
Below are the two ASX blue-chip shares that WAM Leaders highlighted.
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Challenger Ltd (ASX: CGF)
The first company WAM Leaders mentioned was Challenger, the leading Australian annuity business.
The LIC noted that the Challenger share price rose strongly (18%) in October 2026 following news of an $11.80 per share non-binding takeover proposal from TAL Daiichi Life Australia, which owns approximately 20.5% of the company.
It was noted that the proposal represented an approximately 18% premium to the one-month volume-weighted average share price.
However, Challenger's board rejected the proposal as insufficient to recommend it to shareholders, while remaining open to discussions about an improved offer.
WAM noted that underlying operating momentum was also positive, with Challenger's total book value growing by 7.7% in the first quarter of FY27, supported by robust demand for fixed-term annuities. In that announcement, released on 19 October 2026, it said total sales grew 52% to $4.4 billion while fixed-term sales soared 103% to $2.2 billion.
The WAM investment team noted that Challenger remains a core holding in its portfolio and that there's "scope for a higher takeover offer" due to Challenger's growth outlook, the structural tailwind from Australia's ageing population, and potential improvements in capital efficiency under the new Australian Prudential Regulation Authority (APRA) framework.
GPT Group (ASX: GPT)
The other ASX blue-chip share the LIC highlighted was the real estate investment trust (REIT) GPT.
WAM noted that the GPT Group share price rose during October (up 6.8%), supported by a strong rally in long-dated Australian bonds during the month, reversing much of the weakness seen in September and improving market sentiment towards long-term property assets.
The investment team noted that the $200 million Rouse Hill Town Centre expansion opened fully leased, adding 10,500 square metres and more than 50 tenancies with income starting from the first day. The development is tracking to a yield on cost ahead of its initial 6.5% target.
The fund managers believe that successful delivery demonstrates the ASX blue-chip share's ability to create value through its development pipeline.
The WAM investment team remain "constructive" on GPT Group's high-quality portfolio and improving earnings fundamentals, with the share price continuing to trade at a discount to its net tangible assets (NTA) backing.
On 17 August 2026, it released its FY26 half-year result, which revealed NTA of $5.61. That means, at a share price of $5.10, it's trading at a 9% discount to that NTA. In other words, it's still trading at a sizeable discount.
