WMI - WAM Microcap

[System]

WAM Microcap Limited is a Listed Investment Company that aims to provide Shareholders risk-adjusted returns derived from a portfolio of undervalued growth companies listed on the ASX with a market capitalisation of less than $300 million at the time of acquisition using Wilson Asset Management's research-driven and market-driven investment processes.

It is anticipated that WMI will list on the ASX during June 2017.

http://wilsonassetmanagement.com.au/lic/wam-microcap/

 

[peter2]

A successful debut. Price has continued higher after a slight pause.
I've bought this BO for a conservative portfolio. I am trying to buy more (@ 1.24) but price has bolted higher today. It's no coincidence that the XSO has also broken higher.

 

[Miner]

for some times I stopped looking at WMI but I am glad to read Peter2's posting and realized to have a nice jump in less than 3 months. This is one share which BT bogged me and bought from the market with no extra cost for me plus free brokerage. Who complains?

 

[willy1111]

Yes got some of this in the ipo with the intention of drp (which isn't available yet) and put in the bottom draw for 10 years plus.

Hope it does as well as WAM has done over the last 20 yrs compounding circa 18% p.a.

Has gotten off to a good start.

 

[Tightwad]

no complaints here, 5-6% premium to nav, hope it blows out to wam's 26%

 

[Kryzz]

WMI had it's strongest close in few months here on a prior swing high. The fund has gone from 18% to 23% cash in the past month. Most of their top 20 holdings seem to be travelling well also (except RKN!)

 

[peter2]

I've been an investor (sort of) of WMI in the past (when the price was going up). It's been very disappointing in 2018. This chart shows WMI against the ASX Small Ords index (XSO). The XSO is making new highs while WMI goes sideways. I'm aware this comparison is not entirely fair (div's) but it does show that WMI is struggling.

Like most funds, the managers struggle with selling their dogs. They buy into the bullish narrative and become emotionally tied to the company. They generally sell too late.

The chart also shows that WMI started at the same time as the bullish rally in the small cap sector. The challenge for the managers is realising some of their profits, selling the dogs and buying the next wave of small cap growth stocks. The opportunities in the ASX are too few. I think they'll struggle.

 

[tech/a]

As I see it.

 

[willy1111]

The challenge for the managers is realising some of their profits, selling the dogs and buying the next wave of small cap growth stocks. The opportunities in the ASX are too few. I think they'll struggle.

I think they did it well with WAM over the last 20 yrs and I think (ok maybe I hope) they will do again over the next 20 yrs with WMI.

WAM has gotten to a size which makes investing in the small caps too difficult/immaterial on the performance of the fund. Hence create a new smaller fund to play in the space that allowed WAM to get to the size it is today.

 

[Mr Bear]

I've been an investor (sort of) of WMI in the past (when the price was going up). It's been very disappointing in 2018. This chart shows WMI against the ASX Small Ords index (XSO). The XSO is making new highs while WMI goes sideways. I'm aware this comparison is not entirely fair (div's) but it does show that WMI is struggling.

Like most funds, the managers struggle with selling their dogs. They buy into the bullish narrative and become emotionally tied to the company. They generally sell too late.

View attachment 87850
The chart also shows that WMI started at the same time as the bullish rally in the small cap sector. The challenge for the managers is realising some of their profits, selling the dogs and buying the next wave of small cap growth stocks. The opportunities in the ASX are too few. I think they'll struggle.

These guys have not bought into the bullish narrative, they hold 20% cash and around 30% in their main fund. This is why comparing them to the xso over the short term is irrelevant not dividends. This also highlights their willingness to sell early not too late..

They are really bearish at the moment and have been comparing the current run up in small cap stocks to previous periods prior to market busts.. obviously they will underperform on the upside but if the market falls 30% they will hardly struggle.. plenty of dumb managers out there but these guys aren’t one of them..

 

[Dona Ferentes]

WAM Microcap will pay a 3¢ a share special dividend as the fund manager reported a healthy rise in net profit thanks to strong performance from its portfolio of smaller stocks.

Net profit after tax increased to $11.3 million from $7 million as net realised and unrealised gains in investments rose to $17.6 million from $8.1 million at the same time last year.

The listed investment company's portfolio produced an 11.8 per cent return compared to a 5.7 per cent decline in the S&P/ASX Small Ordinaries Accumulation Index.

The outperformance was achieved with an average cash weighting of 21.9 per cent.

A fully franked final dividend of 3¢ a share and a special fully franked dividend of 3¢ a share will be paid on October 23.