By William McInnes
Wilson Asset Management’s strategy to seek out listed investment companies trading at a significant discount to their underlying value through a new WAM investment vehicle has kicked off, with the fund manager snapping up shares in rival Magellan’s “first class” high conviction fund.
The Australian Financial Review’s Street Talk column reported on Thursday that WAM was buying up shares in Magellan’s $1 billion-odd Magellan High Conviction Trust (or MHH), which was trading at a 12 per cent discount to its net asset backing.
WAM just closed a $225 million initial public offering for its new LIC, WAM Strategic Value (also known by its ticker WAR). It is designed to focus entirely on buying up LICs trading at a discount, and the offer was oversubscribed.