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WAM - WAM Capital

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WAM is unlikely to make the ASX shockers thread but it's still capable of providing a shock.
Today's price plunge to 2.25 is a shock. I've been waiting for a HL to re-buy as it's been a good conservative post div. earner over the past few years.

When they were raising capital six months ago I was wondering how they were going to invest it. The small/mid cap sector that they invest in had a great run up for the prior two years. That's underpinned their good performance (and made the cap raising so successful). That sort of quick growth doesn't persist. One only needs to look at the XEC (emerging companies index) to see what's happening to that sector.

Currently WAM is involved with starting a micro-cap fund and being involved with CYA that also invests in the same sector.

I think WAM has taken their eyes off the ball and it's hit them in the head.
 
WAM micro is set up to invest in companies sub $300M market cap at time of entry.

With WAM Capital now worth 1.2B, taking a small position in companies sub $300M isn't likely to contribute a material return on the overall fund, thus the reason to create a new smaller fund.

I'd expect the returns to be quite volatile but possibly as good as the returns WAM capital enjoyed in the early days. 17% compounded over 17 years is a pretty good track record.
 
With WAM Micro being setup,... will the mgmt lose sight of WAM Capital in future, and they focussed all they have onto the new fund ? Is this something common in such fund mgmt companies ? Ie,... setting up new funds whenever possible and then set aside the older, performing ones ?
 

I expect WMI to outperform WAM in the future. Microcaps has arguably been the strength of the Wilson brand especially in the early days as you mentioned, and so you get that with WMI. The success and increased size of WAM means it will not buy the good smaller opportunities to the extent it used to. Strangely though you can buy WMI much closer to its NTA.
 
Means WMI is cheaper compared to WAM,... which is normal because WMI has just been launched, and investors are more careful. I think WMI will be more volatile given its investments into such small-cap companies,.....
 
WAM Capital has declared a final 7.75 cents per share fully franked interim dividend, to take the full year total to 15.5 cents per share.

WAM Capital reports that before fees and taxes the investment portfolio's 2.8 per cent fall for the year beat the 7.2 per cent fall of the S&P/ASX All Ordinaries Accumulation Index by 4.4 per cent.

The portfolio's top holdings by weighting at the period end were Elders, Bapcor, IDP Education, Austal and Infomedia.

- trades above its NTA (at least recently, this was the case)

 
Good December Half results, remembering they keep a fair bit of cash in reserve during doubtful times. Weekly chart looks more bullish than not to me.

Held
Sentiment: Hold

"The WAM Capital (ASX: WAM) Board of Directors announced today a fully franked interim dividend of 7.75 cents per share, currently representing an annualised fully franked dividend yield of 6.9%, total shareholder return of 26.8% in the financial year to date and strong investment portfolio outperformance."

The WAM Capital investment portfolio increased 22.8%^ in the financial year to date, outperforming the S&P/ASX All Ordinaries Accumulation Index by 7.1%^ with an average cash holding of 11.0%.

Weekly
 
Anybody knows what's goin' on with WAM?
Since the last post, by @finicky , the share price have been dropping for two weeks.
Last week, Feb 8-12, volume spiked to 14+ million, which is the largest in the last 10 yrs.
What is more interesting is that last week's volume is larger that the 2nd week of March 2020
- the height of the pandemic news.
Some big guys are liquidating?....moving their funds to somewhere else?.....they must know something
we don't.
.

-
 
January 2021 Investment Update ... Pre-tax NTA of $1.81

still trading well above this level.

when WAM took over Wealth Defender (destroyer?) Equities WDE in 2017, they offered WAM shares - then trading at similar premium - or cash. The targets took the shares and then sold (as you would). WAM dropped a bit when higher than normal volume disturbed the usual sleepy trading. <a lot of buyers n holders in the shareholder base>

Now looks like AYS and CLF corporate moves are in the end game ... something similar happening?
 
Feb 19 (Reuters) - Wam Capital Ltd
  • HY PROFIT BEFORE INCOME TAX $233.4 MILLION, UP 144.1%
  • HY REVENUE FROM ORDINARY ACTIVITIES $258.8 MILLION, UP 117.8%
  • DECLARES INTERIM DIVIDEND OF 7.75 CENTS PER SHARE
 
And maybe a shake up of the portfolios amongst the 7 LICs run by Wilson.

It is understood the Wilson Asset Management team has spent the past week or two marketing WAR, or WAM Strategic Value, to existing clients and financial planning groups, to make sure the cash rolls in when the offer opens later this month.

The $225 million IPO was slated to be priced at $1.25 a share, according to a presentation given to potential investors, with the first $125 million reserved for existing WAM investors (dubbed the Wilson Asset Management Family).

Firm founder Wilson will personally manage the WAR portfolio and target anything trading at a discount to its underlying asset values. His primary focus will be on other listed investment company and listed investment trusts, the presentation said.

Of course WAM's no stranger to LIC and LITs. The firm already has 18 positions worth $147.7 million and trading at an average 14.3 per cent discount to their asset backing, the presentation said. It would make sense if some or all of those ended up inside WAR, given its strategic objectives.

Those positions include shares in the likes of high-profile LICs run by L1 Capital and VGI Partners, where WAM is already a shareholder, as well as smaller offerings from the likes of Naos Asset Management, Antipodes Partners, Spheria Asset Management and Thorney.

Taylor Collison and Morgans are named as joint lead managers to WAR's IPO.
 
Narrowed it down to a punt on any targets yet @Dona Ferentes?
Quid pro quo $ODY, although I shouldn't give that away.
 
I compiled this about a month ago
discount ..... Market Cap ........ Code and Name
-25% ............. $34million .......... GC1 ....... Glennon Small Companies
-23% ............ $723 million ......... CIN ...... Carlton Investments
-22% ............ $105 million ......... TOP ..... Thorney Opportunities
-22% .............. $75 million ......... OZG ..... OzGrowth
-21% ............. $47 million .......... NAC ...... Naos Ex-50 Opportunities
-17% ............. $121 million ......... NSC ...... Naos Small cap Opportunities
-14% ............. $139 million ......... TEK ....... Thorney Technologies
-11% ............. $127 million ......... SEC ...... Spheria Emerging Companies
-11% ............. $225 million ......... QVE ...... QV Equities
-10% ............. $154 million ......... WIC ...... WestOz
-9% ................ $98 million .......... SNC ...... Sandon Capital

There are a few "alternative" and International LICs but they may be harder to unwind (and some are too big)
-9% ................ $95 million ........... AEG ..... Absolute Equity Performance
-18% .............. $462 million ........ PGF ...... PM Capital Global Opportunities
-14% .............. $53 million .......... PAF ...... PM Capital Asian Opportunities
-15% .............. $879 million ........ VG1 ...... VGI Partners Global Investments
-14% .............. $505 million ......... APL ..... Antipodes Global Investment
-16% .............. $120 million ......... TGF ..... Tribeca Global Natural Resources
-23% ............... $23 million ........... LRT ...... Lowell Resources Fund
 
WAM Capital will absorb junior listed investment companies Westoz Investment Company and Ozgrowth in a triple all share merger that gives WAM Capital more than $300 million of assets for $271.5 million.

Westoz and Ozgrowth shareholders will receive WAM Capital scrip as part of the agreed deal. The transaction takes WAM Capital assets to $2 billion. The deal is accretive for WAM Capital, as the new shares will be issued at a premium to the value of its underlying assets.

Westoz and Ozgrowth are presently managed by Westoz Funds Management, under the Perth based Euroz Hartleys Group, which itself is a shareholder in both LICs (as is WAM Capital). The listed Euroz Hartleys is the product of the 2020 unification of the two Western Australian wealth management groups.

A scheme meeting is likely to be held in April 2022 for Westoz and Ozgrowth shareholders to vote on the proposals, which are not interdependent. Ozgrowth shareholders will receive 0.168 WAM Capital shares for each Ozgrowth share held were the deal struck on their respective November 30 valuations, and Westoz shareholders would get 0.652 WAM Capital shares for each Westoz share held.
 
however WIC deploys investment cash NOTHING like WAM , i have had 10 years to buy WAM , but bought WAX in September 2011 ( @ 70 cents and still hold some )
held OZG between December 2011 ( bought @ 14.5 cents ) and May 2018 ( sold @ 18 cents )
bought WIC in July 2011 ( @ $1.115 ) , July 2015 ( @ 94.5 cents ) and January 2016 ( @ 78 cents ) and exited in July 2018 ( @ $1.185 ) bought back in April 2020 ( @ 77 cents ) and still hold

now for some reason Geoff Wilson thinks i really want his WAM LIC now ( when i could have bought in much cheaper years ago )

ummm hey Geoff , maybe some of us retail buyers realize all LICs are NOT the same ( strategy ) you have influence more than a half dozen LICs why wouldn't you have offered say WAX or WMI or even WAA , and give us something kinda like the risk range we have already

PS i bought OZG ( when i had them ) and WIC ESPECIALLY for their WA focus , putting a 'M' on WA won't fool all the holders

PPS i bought BKI as a better fit for me for a stable conservative strategy ( at a fair price )
 
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