When Wilson Asset Management gives its monthly portfolio updates to the market, many investors sit up and listen (this writer included). For a company that runs six successful listed investment companies (LICs), including one that has delivered a return of 16.9% per annum for the last two decades, its investment ideas often prove to be worth their weight in gold.
So what was Wilson doing in September?
In the WAM Capital Ltd (ASX: WAM) portfolio, Wilson reports that top recent performers have included Myer Holdings Ltd (ASX: MYR) and Clover Corporation Limited (ASX: CLV). Myer's online sales growth and recent profit results have seen WAM take an interest, while Clover's penchant for discovering new nutritional products has also caught eyes.
Meanwhile, at WAM Leaders Ltd (ASX: WLE) – the LIC that focuses on the largest ASX blue chips – management is very keen on Ramsay Health Care Limited (ASX: RHC) shares at the moment, citing their new acquisitions and growth trends. Another recent highlight was Santos Ltd (ASX: ATO).
The newest LIC in the Wilson stable, WAM Global Ltd (ASX: WGB), has just announced its first fully franked dividend. Whilst Brexit and the US–China trade war are making things difficult for this internationally focused LIC, WAM Global is confident in alcohol baron Diageo and aeroplane manufacturer Airbus, while being pleased with the performance of CDW Corporation as well.
To the small space now and WAM Microcap Ltd (ASX: WMI) has been firing on all cylinders, delivering a return of 22.2% per annum since its listing in June 2017. A big recent winner has been City Chic Collective (ASX: CCX) but the company also holds Myer and Eclipx Group Ltd (ASX: ECX).
Last but certainly not least is WAM Research Ltd (ASX: WAX). WAM Research invests in a similar way to WAM Capital, but with a deeper focus on their investments' fundamentals (hence the name). WAM Research also has a stake in Myer but was also buoyed by the performance of Brickworks Limited (ASX: BKW) over the last month or two. This LIC also holds Xero Ltd (ASX: XRO) and Harvey Norman Holdings Ltd (ASX: HVN).
Foolish takeaway
I think it pays to try and learn from the best investors out there, and Wilson Asset Management is always a source of good ideas, in my opinion. WAM and WAX are both trading for significant premiums to their underlying assets today, but all other WAM LICs look to be at or under their fair value.
