WAM Capital: Why This LIC Is Trading at a Rare Discount to Its Net Tangible Assets
Updated: Oct 2
Written by Christopher Hall, AdvDipFP | Authorised Representative, AFSL 526688 | Updated October 2026
Analysis sourced from Gary Glover (AR 259215), Authorised Representative, Novus Capital Limited (AFSL 238 168)
WAM Capital (ASX: WAM) is trading at a discount to its net tangible assets for what Gary Glover, who reviews ASX momentum stocks in a recorded weekly session with Finer Market Points, described as the first time in his experience since 2015. The listed investment company has historically traded at a premium to NTA; Gary Glover's anecdotal estimate, given during a 29 September 2026 session, put the current gap at somewhere between 6% and 10% below NTA. The underperformance behind that shift is not a stock-picking failure specific to WAM — it is a structural feature of how index-style exposure behaves through a commodity-led market, as Christopher Hall, Authorised Representative (AFSL 526688), explains below.
Gary Glover and Christopher Hall review ASX value shares, listed investment companies and sector rotation during a high-inflation trading environment — recorded 29 September 2026.
Why Is WAM Capital Trading Below Its Net Tangible Assets?
Gary Glover's anecdotal observation, developed across his trading career and not a formal study, is that WAM Capital — along with most of the broader WAM family of listed investment companies — has underperformed over the past six months, and that this is the first time he has seen WAM trade at a discount to NTA rather than its historical premium. He estimated the gap at around 6–10% below the fund's last reported NTA, noting it was "about six the other day" and closer to ten percent at another point in the period — a point-in-time practitioner read, not a verified calculation against WAM's published NTA release.
What's Actually Driving the Underperformance?
Christopher Hall's observation, drawn from his reading of the SPIVA Australia Scorecard published by S&P Dow Jones Indices, is that small and mid-cap Australian active fund managers post the lowest underperformance rate of any Australian equity category over time — not a majority beating the index outright, but a narrower gap against it than any other active category — and the mechanism behind that narrower gap is structural, not a function of superior stock-picking. A broad index must hold its commodity constituents all the way through a cycle, rising with them and falling with them. An active manager with a more industrial, less commodity-heavy mandate can simply not hold those names. Over the past six months, by Gary Glover's account, roughly two-thirds to three-quarters of the companies on the FMP high-momentum list have been commodity stocks — gold, lithium, antimony, palladium, energy and gas — a segment many active Australian equity funds, including the WAM stable, are mandated to hold only lightly. The same mechanism that narrows an active manager's underperformance during a prior commodity drawdown works against it once commodities are the market's leading performers, which Christopher Hall identified as the specific condition behind WAM's current underperformance. A companion piece on what the SPIVA data actually shows — including the real underperformance-rate figures by category — is available on this site.
What Does WAM Capital Actually Hold?
Gary Glover's anecdotal observation is that the portfolio behind the headline discount includes names he regards as solid, growing mid-cap businesses — he named Aussie Broadband and AP Eagers as examples he liked within the WAM basket. His reading is that the fund's underlying holdings are not the problem; the drag comes from the portfolio's lighter weighting to the commodity names that have led the broader index higher, which a diversified, more industrial-leaning fund is structurally less likely to hold — consistent with how momentum traders find value in overlooked names when broad market leadership rotates.
Does a Discount to NTA Signal an Opportunity?
Gary Glover's anecdotal observation is that WAM Capital still pays a solid dividend and carries unpaid profit reserves, meaning a yield is available even if the broader market moves sideways, with further upside if the NTA recovers and capital flows return once performance improves. He also noted a broader pattern — that flows tend to chase the two or three managers who have had the best recent year — which, in his view, has worked against WAM over this particular period rather than reflecting a change in the underlying portfolio's quality. This disclosure is made in accordance with the Gary Glover Source Disclaimer at the end of this article.
Remember that past performance is no guarantee of future results, and all trading involves risk.
Frequently Asked Questions
Why is WAM Capital trading at a discount to its net tangible assets?
Gary Glover's anecdotal observation is that this is the first time since 2015 he has seen WAM Capital trade at a discount rather than its historical premium, which he estimated at roughly 6–10% below NTA during a 29 September 2026 session. The underperformance behind it reflects the fund's lighter exposure to commodity stocks, which have led the broader market over the past six months.
Is WAM Capital's underperformance a result of poor stock selection?
Not according to Gary Glover's reading of the portfolio, which includes holdings he regards as solid, growing businesses such as Aussie Broadband and AP Eagers. The underperformance is better explained structurally — a broad index holds commodity stocks through an entire cycle, while an active manager with a more industrial mandate can hold them only lightly, which works against it specifically when commodities are leading.
Does WAM Capital still pay a dividend while trading at a discount?
Gary Glover's anecdotal observation is that WAM Capital continues to pay a solid yield and holds unpaid profit reserves, meaning income remains available even if the share price and NTA move sideways.
What is the SPIVA Scorecard and how does it relate to WAM Capital?
The SPIVA Australia Scorecard, published by S&P Dow Jones Indices, tracks how actively managed funds perform against their benchmark indices over time. Christopher Hall's reading of those reports is that small and mid-cap Australian active managers post the lowest underperformance rate of any Australian equity category — not a majority beating the index outright — for structural reasons discussed in a companion article on this site.
About the Author
Christopher Hall, AdvDipFP, is an Authorised Representative (AFSL 526688) and the editorial lead at Finer Market Points, covering ASX-listed momentum stocks and market data for an Australian trading audience. Read more on the author's profile page.
Sources
# | Source | Type |
1 | Gary Glover, Finer Market Points recorded session, 29 September 2026. | Gary Glover session |
2 | S&P Dow Jones Indices. SPIVA Australia Scorecard. | External research |
All Gary Glover observations in this article are anecdotal practitioner observations developed across his trading career — not formal studies.
Related Finer Market Points Educational Resources
This article includes general trading observations made by Gary Glover (AR 259215), Authorised Representative of Novus Capital Limited (AFSL 238 168), during a recorded Finer Market Points session on 29 September 2026. The observation reflects Gary Glover's general approach and his anecdotal observations developed across his trading career — it is general commentary only, and is not a formal study, not financial advice, and not a recommendation to trade any security. It was made in the course of that session and not in response to any individual's circumstances. Content has been edited and summarised by Finer Market Points for educational purposes.
This content is for educational purposes only and does not constitute financial advice. Past performance is no guarantee of future results.
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