Argo secure 5 percent stake in McGrath

The listed fund manager Argo Investments has become a substantial investor in the listed real estate group McGrath.

Argo, the second biggest investment company on the Australian Stock Exchange, has acquired just over a million McGrath Limited shares since April - paying between $1.10 and $1.20 a share – to take its stake to 5.02 per cent.

Argo, founded in 1946, is a is a long-term value investor with a market cap of almost $5 billion.

McGrath floated at $2.10 in December with its shares at $1.18 on Friday.

Founder John McGrath remains the biggest shareholder in McGrath Limited with almost 28 percent of the company. 

Shane Smollen, who sold his 10 McGrath franchised offices back to the company pre-IPO in exchange for cash and shares, has a 5.59 percent stake.

Its former chief operating officer Geoff Lucas owns more than 4 percent.

The investment manager and value investor, Perpetual owns around 13 percent.