Geoff Wilson is the man behind the name of Wilson Asset Management (WAM), which manages several high-performing listed investment companies (LICs) like WAM Capital Limited (ASX: WAM), WAM Research Limited (ASX: WAX) and WAM Microcap Limited (ASX: WMI).
Another of the LICs WAM is WAM Leaders Ltd (ASX: WLE). This LIC invests in companies in the S&P/ASX 200 Index.
Theoretically, it's more difficult to generate market-beating returns with shares just from the ASX200 because you have less stocks to choose from than if you can pick any share on the ASX.
Since the half-yearly WAM city presentations finished, Geoff Wilson has been buying shares of WAM Leaders. Since the end of May he has bought around $286,500 worth of WAM Leaders shares.
The main reason he did this is because WAM Leaders was trading at a discount to its NTA before tax. At the end of April the share price was $1.12 and the NTA before tax was $1.18. The discount was despite the WAM Leaders portfolio delivering a return of 14% before fees over the past year, compared to the index's 5.5% return.
WAM Leaders initially launched with a significant number of options, but the option period is over and now I think fees would be the only concern investors could have, considering its outperformance of the market.
It has steadily increased its dividend yield since listing and now has a grossed-up dividend yield of 6.3%.
Foolish takeaway
WAM Leaders looks like good value for its current performance, which also includes some of the portfolio being in cash. Although I prefer WAM Research to WAM Leaders, I think WAM Leaders would be a good option for passive investors.
