Barrack St Investments Ltd (ASX:BST) and Flagship Investments Ltd (ASX: FSI) are listed investment companies (LICs) managed by ECP Asset Management which was founded by the highly regarded Dr Manny Pohl.
While Flagship Investments has a mandate to invest in any listed company, Barrack St is restricted to only investing in small and mid-cap ASX listed stocks.
At a recent investor presentation ECP highlighted three stocks which had recently been added to either one or both portfolios.
3 stocks to buy
Magellan Financial Group Ltd (ASX: MFG) – ECP is attracted to Magellan's success at building itself into a leader in the Australian funds management sector for international equities and global listed infrastructure strategies.
Baby Bunting Group Ltd (ASX: BBN) – ECP is attracted to the market position of Baby Bunting as Australia's largest nursery retailer and one-stop-baby shop.
PWR Holdings Ltd (ASX: PWH) – ECP is attracted to PWR's niche positioning within the high performance motor sports and high end production vehicle market.
3 stocks to sell
ECP also mentioned three stocks which had been removed from one or both portfolios. Explanations were not given, but presumably on valuation grounds or a change in investment thesis AMP Limited (ASX: AMP), Platinum Asset Management Limited (ASX: PTM) and InvoCare Limited (ASX: IVC) have all been sold.
Foolish takeaway
Blindly following the buy and sell decisions of a fund manager is unlikely to be a successful strategy because it is only after the fact that you will be made aware of portfolio changes.
Following fund manager comments and stock decisions can however provide new insights into a stock or produce fresh investment ideas for further analysis.
