I like to keep an eye on substantial shareholder notices. 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 are summarised below. Here's what these fund managers have been buying:
BWX Ltd (ASX: BWX)
A notice of change of interests of substantial holder reveals that Eley Griffiths has been increasing its stake in this personal care products company. According to the notice, the specialist investment management company has added a total of 1,655,004 shares to its holding in recent months. This has taken its stake to 8,507,443 shares, which lifts its interest from 5.04% to 6.06%.
One broker that would approve of these investments is Macquarie. Earlier this month the broker retained its outperform rating and lifted its price target to $5.30. This compares to the current BWX share price of $4.35. Macquarie appears to see promise in the company's partnership with Chemist Warehouse and its expansion in the supermarket channel with a deal with Woolworths Group Ltd (ASX: WOW).
Redbubble Ltd (ASX: RBL)
According to a notice of initial substantial holder, Kayne Anderson Rudnick (KAR) Investment Management has been building a position in this ecommerce company over the last few months. The notice reveals that the LA-based investment firm started buying Redbubble shares on 24 February and was still doing so as recently as last week. KAR Investment Management now owns a total of 13,881,972 shares, which equates to a 5.07% interest.
Judging by its purchases, it appears to believe the recent weakness in the Redbubble share price is a buying opportunity. One broker that would agree with this is Morgans. Last month the broker put an add rating and $6.64 price target on its shares. This compares to the latest Redbubble share price os $5.05.
