WAM Capital Ltd (ASX: WAM) shares are up 2.88% to $1.61 on Tuesday amid the broader market rebound.
The S&P/ASX 200 Index (ASX: XJO) is regaining some of yesterday's 4.23% plunge and is up 2.03% to 7,492.5 points.
WAM Capital is a listed investment company (LIC) run by fund manager Wilson Asset Management.
Investors are digesting WAM Capital's latest monthly investment update today.
Let's take a look.
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WAM ASX shares rise amid market rebound
WAM seeks to invest in undervalued ASX shares with compelling growth runways.
Its top 20 holdings include Life360 Inc (ASX: 360), Hub24 Ltd (ASX: HUB), Myer Holdings Ltd (ASX: MYR), Judo Capital Holdings (ASX: JDO), A2 Milk Company Ltd (ASX: A2M), Bega Cheese Ltd (ASX: BGA), and CAR Group Limited (ASX: CAR) shares.
The value of the WAM Capital fund went down in March.
At the end of the month, the net tangible assets (NTA) per share before tax were worth 154.2 cents.
This was down from February when the NTA was 162.05 cents per share.
On 31 March, WAM ASX shares closed at $1.64 per share.
Amid yesterday's market meltdown, WAM ASX shares fell 2.48% to close at $1.56.
Today, the WAM share price is 2.88% higher at $1.61.
What happened in March?
WAM reported that Reject Shop Ltd (ASX: TRS) shares delivered a strong performance for the fund last month.
At the other end of the scale, Tuas Ltd (ASX: TUA) shares were a detractor, but WAM saw this as an opportunity.
Reject Shop shares rose by 97% in March to close at $6.60 on 31 March.
Today, Reject Shop shares are steady at $6.45.
WAM Capital commented:
During the month, the company announced a binding scheme implementation agreement where Canadian value retailer Dollarama will acquire The Reject Shop for $6.68 per share, a 112% premium to the company's closing share price on 26 March 2025 of $3.15 per share.
The deal was unanimously recommended by the board and we are excited to see future opportunities it presents, including accelerating The Reject Shop's store network expansion.
It looks like WAM sold down some of its Reject Shop shares in March, presumably to take some profits off the table.
A separate ASX lodgement by Reject Shop reveals that WAM is no longer a substantial holder (i.e., a holder of 5% or more of issued shares).
ASX telecommunications share Tuas fell by 12.4% in March to close at $5.51 on 31 March.
Today, the Tuas share price is $5.03, up 0.6%.
WAM Capital said:
In March, the company reported its FY2025 half year results where it upgraded its revenue and earnings before interest, taxes, depreciation, and amortisation (EBITDA) guidance by almost 10% and 20% respectively.
Despite the positive update, its share price declined for the month.
But the fund manager saw this as an opportunity to buy the dip.
WAM Capital explained:
We have taken this opportunity to increase our position in Tuas as we continue to have confidence in its ability to expand its total addressable market while growing its existing product offerings.
Having successfully entered the Singaporean mobile sector, Tuas is now expanding into the Singaporean broadband and the global
eSIM markets, underpinning long-term revenue and profit growth.We believe Tuas possesses an enduring competitive advantage, and its scalability will drive shareholder returns in the coming years.
