Argo Investments Limited (ASX: ARG) is one of Australia's largest and oldest listed investment companies (LIC). Unlike many of the "new age" LICs, Argo doesn't have an external management company which charges high fees.
Rather, Argo utilises internal employees to manage the company's investment portfolio and thereby operates with a dramatically lower management expense ratio than nearly all other LICs.
With a long-term track record of outperformance, shareholders have enjoyed share price gains (which exclude the significant benefit from dividends paid) of 33% in the last five years and 28% over the past decade. In comparison, the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has gained around 15% and 23% respectively over the same time frames.
With a history of outperformance, Argo's portfolio moves are watched closely by many investors. In the past four months the group has spent approximately $120 million on purchasing a range of stocks, amongst the largest purchases were the following eight stocks:
- Australia and New Zealand Banking Group (ASX: ANZ)
- BHP Billiton Limited (ASX: BHP)
- CBL CORP FPO NZ (ASX: CBL)
- Commonwealth Bank of Australia (ASX: CBA)
- DUET Group (ASX: DUE)
- Origin Energy Ltd (ASX: ORG)
- Primary Health Care Limited (ASX: PRY)
- Westpac Banking Corp (ASX: WBC)
While no investors will get every investment call right, keeping an eye on top performing investors can be a great way to unearth stocks worth taking a closer look at.
