Top Australian fund manager Geoff Wilson thinks that the share price of WAM Global Limited (ASX: WGB) is a buy.
Between 21 February 2020 and 24 February 2020 Mr Wilson has acquired 40,568 WAM Global shares at a cost of $93,581, which translates to a price per share of around $2.30.
The WAM Global share price has fallen around 4.5% to $2.20, giving us the opportunity to buy shares at a cheaper price than Mr Wilson just bought them for. Mr Wilson and his investment team are some of the best investors in Australia, so getting a better buying price than his recent buy(s) would be a good outcome for us.
What is WAM Global?
It's a listed investment company (LIC) which invests in global shares around the world. Its international investment mandate gives investors very pleasing diversification.
At the end of January 2020, 60% of its portfolio was invested in the US, 7% in France, 4.9% in Japan, 4.7% in Germany, 4.5% in the UK, 2.9% in Hong Kong, 6.4% in other countries and 9.6% of the portfolio was cash. Some of its current top holdings include American Express, Airbus, LVMH, Diageo, Ubisoft, Hasbro and Logitech.
The hunting ground for WAM Global is undervalued growth companies which may outperform the overall global share market, hopefully sooner rather than later.
Why is WAM Global a good opportunity today?
Well, firstly the WAM Global investment team are trying to find undervalued growth businesses, which are good shares to have exposure to. Many Aussies don't have enough international diversification within their portfolios.
Second, WAM Global is trading at an attractive discount to its net tangible assets (NTA). A discount means you can buy $1 of shares for noticeably less than $1. In recent times the discount between the NTA and share price has been around 10%. On 10 February 2020 the discount was 9.3% when WAM Global released its report.
Finally, the coronavirus is causing a lot of market volatility, particularly on the global share market. It's hard to say which share market will be hit the hardest and which country (other than China) will see the biggest disruption, so it could be a wise idea to be invested in a diverse portfolio like the one controlled by WAM Global.
Foolish takeaway
Over the long-term I expect WAM Global will offer attractive risk-adjusted returns with a good dividend. It's currently aiming to increase the dividend and yield, with the grossed-up dividend yield sitting at 3.9%.
