Top UK money managers have been buying these 3 stocks

When looking for stocks to buy, it pays to look at the trades that professional investment managers are making. Pro money managers tend to have more resources than the average investor and their trades can provide valuable investment ideas.

Here, I will highlight some recent trades from three well-known UK money managers. Is this stock worth buying today?

Buy a dip

Let’s start with the purchase of the star fund manager Nick Sepur, who uses it Lindsell Train UK Equity fund. He had snapped Diageo (LSE: DGE) shares recently. They have backed out and investment managers have bought them.

Sepur believes that Diageo can offer inflation protection (due to its strong brand) as well as long-term growth. And they like it when the company buys back its own stock. They believe that this will increase the share price which may rise when the stock returns (which may not happen overnight).

Diageo is an ideal investment to hold in the current economic climate as it offers a rare and valuable combination of inflation protection and secular growth.

Nick Train

I trade this from the train. If I didn’t already have a large position in Diageo, I would buy more shares in the spirits company.

Have a nibble

Next is to buy from Terry Smith, who wears popular Fundsmith Equity fund.

US regulatory filings indicate that in the last quarter of 2022, Fundsmith will buy Apple (NASDAQ: AAPL). According to Fundsmith’s 13F filing, the investment manager acquired 12,749 shares in the Q4.

Smith first bought Apple shares in the third quarter of 2022. And it seems he wants to buy more. However, his recent purchases are quite small. Those 12,749 Apple shares probably cost Smith less than $2m (Fundsmith manages around £23bn of investor money). This shows that they are waiting for better opportunities to increase their shares significantly.

I think this is a smart approach from Smith. I’ll be ready to have a nibble on Apple stock today. But I am waiting for some market volatility before opening the stock as the price is quite high now.

Buy aggressively

Finally, I have a valuable trade from Scottish fund manager Baillie Gifford, who runs a number of popular funds and trusts including Scottish Mortgage Investment Trust.

The 13F filing shows that in the last quarter of 2022, the investment management firm significantly increased its stake in the US-listed renewable energy company. SolarEdge technology. During the quarter, he acquired 36,411 shares (about $11 million). This increased the size of the company’s holdings by 2.636%.

Now this trade is very interesting, in my view. SolarEdge Technologies – which specializes in solar energy solutions – is generating strong revenue growth today (+61% growth from the last quarter) and is already profitable. So it can be a good play on the theme of clean energy.

This is a higher risk stock because the price is quite high. But all things considered, I think it’s worth looking at now.