Fund managers have been buying these ASX shares

Here's what Commonwealth Bank of Australia (ASX:CBA) and Washington H. Soul Pattinson and Co. Ltd (ASX:SOL) have been buying…

| More on:

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

I like to keep an eye on the substantial shareholder notices that are released to the ASX. This is because these notices give you an idea of which shares large investors, asset managers, and investment funds are buying or selling.

Two notices that have caught my eye this week are summarised below. Here's what these fund managers have been buying:

Adairs Ltd (ASX: ADH)

A notice of initial substantial holder reveals that Commonwealth Bank of Australia (ASX: CBA) has been buying this homewares retailer's shares. According to the notice, the banking giant and its subsidiaries have been building a position in the company since the middle of March. This was at a time when the Adairs share price had crashed lower at the height of the market volatility. In fact, the bank was able to pick up a large parcel of shares for as low as 63 cents each.

It has continued to buy through the recovery and was buying shares as recently as 15 July. That purchase brought its holding to just over 8.6 million shares, which represents a 5.09% stake in the company. At the time of writing the Adairs share price is trading at $2.37, which isn't overly far from its 52-week high of $2.77. This certainly appears to have been a successful investment by Commonwealth Bank.

Uniti Group Ltd (ASX: UWL)

Another notice of initial substantial holder shows that Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) has become a major shareholder of this telecommunications company. According to the notice, the investment house has made a series of share purchases between 1 June and 13 July. The most recent purchase at the start of the week was for $4 million worth of shares and took its holding to a total of 24,906,745 shares. This equates to a 5.05% stake in Uniti Wireless.

I estimate that the average price it paid for the shares in this notice was approximately $1.65. So with the Uniti Wireless share price currently trading at $1.46, Washington H. Soul Pattinson clearly sees a lot of value in them at this level. And given its long track record of successful investments, it could pay to follow this trade.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Washington H. Soul Pattinson and Company Limited. 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

A smiling man at a shop counter takes payment from a female customer, with racks of plants in the background.
Best Shares

Here's why I think Wesfarmers shares are a great buy for any ASX investor

I argue that Wesfarmers offers investors both growth and income potential.

Read more »

A golfer celebrates a good shot at the tee, indicating success.
Share Market News

Here are the top 10 ASX 200 shares today

ASX investors finally enjoyed a win this Thursday...

Read more »

a man sits back from his laptop computer with both hands behind his head feeling happy to see the Brambles share price moving significantly higher today
Industrials Shares

Up 39% in a year, is there more growth to come for this ASX 200 share?

IML Equity Analyst Josh Freiman shares his views on a major ASX 200 industrial stock.

Read more »

Man looking at his grocery receipt, symbolising inflation.
Share Market News

What the latest US inflation print means for ASX 200 investors

The ASX 200 is likely to benefit if the US Fed cuts interest rates again in December. But will it?

Read more »

guy helping girl invest in shares and dividends
Opinions

5 ways for investors buying ASX shares to stay focused during economic uncertainty

AMP Chief Economist, Dr Shane Oliver, offers advice on how to handle the Trump factor.

Read more »

A worried man holds his head and look at his computer.
Share Fallers

Why Graincorp, Light & Wonder, Orica, and Wildcat shares are falling today

These shares are having a tough time on Thursday. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Catapult, Flight Centre, Nufarm, and Xero shares are storming higher today

These shares are having a strong session on Thursday. But why? Let's find out.

Read more »

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
Opinions

1 ASX growth stock down 30% I'd buy right now

This international business is growing core earnings at a strong rate.

Read more »