2 infrastructure shares this top fund manager is backing

WAM Leaders Ltd (ASX:WLE) is backing Lendlease Group (ASX:LLC) and Cimic Group Ltd (ASX:CIM).

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

One of the top-performing investment returns focused on ASX large caps has been delivered by WAM Leaders Ltd (ASX: WLE).

Over the past year its portfolio has delivered a return of 17.2% before expenses and fees.

WAM Leaders lead portfolio manager Matthew Haupt recently spoke to Livewire to say where he thinks is an opportunity at the moment considering all the political and financial uncertainty going on at the moment.

Regardless of whether Labor or the Liberals win the next election, infrastructure is likely to benefit. Federal and State governments are promising to spend big to keep our capital cities moving.

This is good in the long-term because it improves the city and makes it a better place to live. In the short-term it's good for employment, for GDP and the companies contracted to do the construction.

One of his ideas is Cimic Group Ltd (ASX: CIM), the share price has risen around 80% over the past two years. However, Mr Haupt thinks there's still an opportunity surrounding the structure.

It is heading towards becoming a vertically integrated company like Transurban Group (ASX: TCL) where it constructs a project and then is in charge of managing too.

Another business that Mr Haupt mentioned is Lendlease Group (ASX: LLC). Its local arm in Australia is small but it could grow and become a significant, profitable part of the overall group.

As a bonus, he also suggested that suppliers to the construction industry like Boral Limited (ASX: BLD) and Adelaide Brighton Ltd (ASX: ABC) could be ones to look at.

Foolish takeaway

I agree with Mr Haupt. I like to find businesses that can keep growing regardless of economic dips or not. Infrastructure seems to be one of those sectors, but I'm personally unsure how big the opportunity is and the risks. It's outside of my circle of competence, so I'm personally happy to leave the opportunity to other people.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Transurban Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Broker written in white with a man drawing a yellow underline.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

Woman with a scared look has hands on her face.
Broker Notes

Bapcor shares fell more than 30% yesterday. Should investors buy in the dip?

Is this a value opportunity?

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Broker Notes

Broker raises price targets on 2 ASX 200 shares to buy

Ord Minnett has just upped its 12-month share price targets on 2 buy-rated ASX 200 stocks.

Read more »

Man with rocket wings which have flames coming out of them.
Share Gainers

Guess which ASX All Ords stock just rocketed 34% on strong earnings growth

Investors just sent this ASX All Ords stock surging 34%. Here’s what’s happening.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why DroneShield, Gentrack, Metals X, and Northern Star shares are tumbling today

These shares are ending the week in the red. But why?

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Share Gainers

Why Dimerix, Newmont, Regal Partners, and Titomic shares are storming higher

These shares are having a good finish to the week. Let's see why.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Broker Notes

Morgans says these ASX can rise 30% to 50%

The broker has good things to say about these shares.

Read more »

Two businessmen look out at the city from the top of a tall building.
Broker Notes

2 ASX REITs to buy in July: expert

Is it time to consider ASX REITs?

Read more »