WAM - WAM Capital

[WRiley]

WAM is now near an all-time high, circa 2.40. Rate hike did not seem to have affected it !

http://wilsonassetmanagement.com.au/wp-content/uploads/2016/12/5.-WAMNTA-November-16-1.pdf

But Gross Assets seemed to have dipped compared to October 2016, highly because of the Fixed Interest and Cash position. Anybody knows its loan numbers, eg total liabilities, debt-to-equity ratio, etc ??

 

[WRiley]

Mkt is running up in spite of anything negative happening in the world, BUT WAM seems to stay at 2.40. ... If WAM mirrors the All Ords, the SP should be going up too,... why is this not happening ?

 

[McLovin]

Mkt is running up in spite of anything negative happening in the world, BUT WAM seems to stay at 2.40. ... If WAM mirrors the All Ords, the SP should be going up too,... why is this not happening ?

It doesn't mirror the All Ords, it benchmarks to it. If you have a look at the WAM portfolio it's very much mid/small cap weighted. And they have been getting pummelled of late.

 

[WRiley]

It doesn't mirror the All Ords, it benchmarks to it. If you have a look at the WAM portfolio it's very much mid/small cap weighted. And they have been getting pummelled of late.

Tq McLovin for the clarification,... are the mid/small caps being affected badly by events unfolding in the US ? Any opinions of when a turnaround will take place ?

 

[Junior]

Tq McLovin for the clarification,... are the mid/small caps being affected badly by events unfolding in the US ? Any opinions of when a turnaround will take place ?

Small caps have had an awesome run for the past year until a couple months ago, now seeing funds move out of small caps and into large caps.

 

[WRiley]

Small caps have had an awesome run for the past year until a couple months ago, now seeing funds move out of small caps and into large caps.

View attachment 69154

Tq Junior,... funds could be shifting their strategy and their allocation because of the improving sentiment. Large caps should run-up first when the economy picks up ! So,... time to pick-up some good small caps now ??

 

[Tightwad]

i've topped up my small cap fund and i'm still looking at some small caps, i'm willing to wait it out - can't get too excited about most large caps. eventually things should swing back, have seen comments from fund managers indicating the same

 

[WRiley]

i've topped up my small cap fund and i'm still looking at some small caps, i'm willing to wait it out - can't get too excited about most large caps. eventually things should swing back, have seen comments from fund managers indicating the same

Tq Tightward. What index(indices) do you use to view the performance of the Small Caps and Mid Caps ?

 

[Tightwad]

the midcap 50 and small ordinaries here should cover it http://www.asx.com.au/products/index-charts.htm

 

[Iggy_Pop]

After following WAM for a few years, decided to buy a parcel. Have been waiting for a dip but does not happen much. Thought owning some will give access to any SPP which seem to happen most years. I am after dividends as I get closer to retirement as part of my retirement plan. Already own a few LICs with large Cap shares and was after some in the mid to small cap area and WAM seems to be the pick despite higher management fees than others. Have been looking at MIR as well but have not bought any.

Iggy

 

[Tightwad]

i picked up a few after a dip a while ago and i'm up about 12%, better than my small cap fund. pretty confident with them, i like what i see in the media and they put out some good info. they have a lot of holdings i like and some that i wouldn't have the confidence to buy myself.

 

[WRiley]

the midcap 50 and small ordinaries here should cover it http://www.asx.com.au/products/index-charts.htm

Tq Tightwad, a very useful site here !

 

[WRiley]

After following WAM for a few years, decided to buy a parcel. Have been waiting for a dip but does not happen much. Thought owning some will give access to any SPP which seem to happen most years. I am after dividends as I get closer to retirement as part of my retirement plan. Already own a few LICs with large Cap shares and was after some in the mid to small cap area and WAM seems to be the pick despite higher management fees than others. Have been looking at MIR as well but have not bought any.

Iggy

Welcome onboard, Iggy,... let the professionals catch the good mid and small caps for us. Paying them well is justified since the job is not easy,... After all, they've been doing a good job too. Till now !

 

[GlobeTrekker]

WAM's price is now at around 24% premium to NTA which is the highest its ever been I think. Geoff Wilson has been doing very well but I'm not convinced that such a high premium is justified. Sold some recently, but still holding some, so I'm happy to be wrong!

 

[WRiley]

WAM's price is now at around 24% premium to NTA which is the highest its ever been I think. Geoff Wilson has been doing very well but I'm not convinced that such a high premium is justified. Sold some recently, but still holding some, so I'm happy to be wrong!

It's good to be cautious,...on my part, my Average Price is slightly below 2.40, hence the margin of safety is there. I averaged down all the way from 2.44,... I think, can't remember,... the higher this price goes, the larger my margin-of-safety,...

 

[Muschu]

Given their dividend, is there any reason why WAM should not be preferred to the likes of AFI, ARG and MLT? I hold all of these bar AFI...

 

[WRiley]

WAM is into small and mid -caps. What abt the other three ?

 

[Muschu]

WAM is into small and mid -caps. What abt the other three ?

Largely blue chips... MLT for example
Top 20 Investments at 28 February 2017 Market Value $ m Share of Total Assets %
Westpac Banking Corporation 352.2 11.9 Commonwealth Bank of Australia 256.0 8.6 National Australia Bank 152.2 5.1 W H Soul Pattinson 147.3 5.0 Wesfarmers Limited 121.1 4.1 ANZ Banking Group 104.1 3.5 BHP Billiton 90.9 3.1 Bank of Queensland 86.6 2.9 Woolworths Limited 74.8 2.5 Telstra Corporation 72.2 2.4 CSL Limited 69.8 2.4 Bendigo and Adelaide Bank 69.8 2.4 Perpetual Limited 68.5 2.3 AGL Energy 65.1 2.2 Macquarie Group 56.6 1.9 AP Eagers 51.9 1.8 Suncorp Group 44.0 1.5 Brickworks Limited 40.2 1.4 Transurban Group 38.7 1.3 Blackmores Limited 37.6 1.3

 

[WRiley]

Largely blue chips... MLT for example
Top 20 Investments at 28 February 2017 Market Value $ m Share of Total Assets %
Westpac Banking Corporation 352.2 11.9 Commonwealth Bank of Australia 256.0 8.6 National Australia Bank 152.2 5.1 W H Soul Pattinson 147.3 5.0 Wesfarmers Limited 121.1 4.1 ANZ Banking Group 104.1 3.5 BHP Billiton 90.9 3.1 Bank of Queensland 86.6 2.9 Woolworths Limited 74.8 2.5 Telstra Corporation 72.2 2.4 CSL Limited 69.8 2.4 Bendigo and Adelaide Bank 69.8 2.4 Perpetual Limited 68.5 2.3 AGL Energy 65.1 2.2 Macquarie Group 56.6 1.9 AP Eagers 51.9 1.8 Suncorp Group 44.0 1.5 Brickworks Limited 40.2 1.4 Transurban Group 38.7 1.3 Blackmores Limited 37.6 1.3

Tq. For myself,.. I think I can handle the blue chips myself without going through MLT and then having to pay them mgmt. fees. My investment objectives are clear,...
It's only that at this moment, I may need help with the smaller players,... hence, buying into WAM !

 

[pinkboy]

Tq. For myself,.. I think I can handle the blue chips myself without going through MLT and then having to pay them mgmt. fees. My investment objectives are clear,...
It's only that at this moment, I may need help with the smaller players,... hence, buying into WAM !

Besides the fact that you effectively have at risk 1 out of every 5 shares with WAM (25% premium), you might want to check out the management fee structure for Wilson Asset Management. They take stiff profit dollars off the table which can't be used to grow the business or pay out dividends to WAM shareholders as effective as say MLT, AFI or ARG all with low <.2% management fee and steady growth dividends.

ARG, AFI and MLT are much bigger beasts with different investment strategy than WAM so cant really be directly compared.

pinkboy