The fund manager Wilson Asset Management (WAM) has named a couple of leading S&P/ASX 200 Index (ASX: XJO) share picks within the WAM Capital Ltd (ASX: WAM) portfolio.
WAM is looking for the most compelling undervalued growth opportunities in the Australian market. Typically, the investment team at WAM wants to find ideas with a catalyst that can boost the share price.
WAM Capital is a listed investment company (LIC) that is looking further down the market capitalisation list, rather than just the biggest names.
The Wilson Asset Management fund managers picked out a metal detection and communications company and a network-as-a-service provider, both of which contributed to portfolio outperformance during August 2026.
Let's take a look at why the investment professionals like these businesses.
Codan Ltd (ASX: CDA)
The first ASX 200 share highlighted by WAM was Codan, an Australian technology company that develops and manufactures metal detection and communications solutions.
The investment team highlighted that the Codan share price rose in September following a trading update in which the company upgraded its FY27 earnings expectations. Management noted stronger-than-expected demand across its communications segment.
Wilson Asset Management noted that conflict-affected regions were a major part of the uplift, accounting for approximately 50% of the FY27 first-half communications segment revenue, up from approximately 20% in the prior corresponding period.
WAM said the ASX 200 share's metal detection segment also experienced a solid start to FY27, supported by recently launched products and a favourable gold price.
Wilson Asset Management's investment team concluded its optimistic thoughts on the ASX share:
We remain confident in Codan's medium-term growth outlook given its exposure to material spending tailwinds in defence globally.
Megaport Ltd (ASX: MP1)
The other ASX share that WAM highlighted was Megaport, a network-as-a-service provider focused on connectivity and compute infrastructure across global data centres.
The investment team noted that Megaport performed strongly amid several positive news stories in September.
Those developments included securing approximately $1 billion in new artificial intelligence (AI) infrastructure contracts and a subsequent upgrade to the guidance for the 2027 financial year.
The three new AI infrastructure agreements increased the company's combined total strategic contract value to approximately $2.3 billion across the contracts announced since April 2026.
Wilson Asset Management said the company remains well-positioned to grow its customer base, supporting its strategy of reducing overall customer concentration risk.
The investment team concluded:
We remain positive on the company's ability to capitalise on growing demand for AI infrastructure.
The post A top fund manager is bullish on these ASX 200 shares appeared first on The Motley Fool Australia.
Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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