I’ve been keeping a close eye on what substantial shareholders have been doing recently.
Substantial shareholders are shareholders that hold 5% or more of a company’s shares. These tend to be large investors, asset managers, and investment funds. These shareholders are obliged to update the market when they make any changes to their holdings.
As a result, I feel investors should look to use these notices to their advantage. After all, they show where the smart money is going.
Two notices that have caught my eye are summarised below:
Marley Spoon AG (ASX: MMM)
According to a change of interests of substantial holder notice, Perennial Value Management has been increasing its stake in this meal kit delivery company. The notice reveals that over the last four weeks the fund manager has picked up just over 2 million Marley Spoon shares. This has increased its holding in the company to approximately 12.5 million shares, which is the equivalent of a 7.88% stake.
Marley Spoon is being seen as a big winner from the pandemic due to more eating at home. This has led to a surge in demand for its meal kit subscriptions, sending its shares hurtling higher. Since this time in March, Marley Spoon’s shares have climbed 400%. This fund manager appears to believe its shares can continue climbing higher.
Monash IVF Group Ltd (ASX: MVF)
A notice of initial substantial holder reveals that Challenger Ltd (ASX: CGF) has been buying this fertility treatment company’s shares. Over the last six weeks the annuities company has picked up 20,687,831 shares in Monash IVF. This represents a 5.74% stake in the company.
Challenger may believe that recent share price weakness is a buying opportunity now that lockdowns are easing and fertility treatment services are up and running again. The Monash IVF share price is down 60% from its 52-week high.
And here are five more top shares which have fallen heavily and fund managers are no doubt paying close attention to right now.
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More reading
- Is it time to invest in shares or wait on the sidelines?
- ASX shares and investing trends that could boom post COVID-19
- How to build your first ASX share portfolio
- Why this ASX small-cap share should be on everyone’s watchlist
- Is the Challenger share price a buy for the 11% dividend yield?
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Challenger Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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