Count Financial has taken a 5 per cent interest in DKN Financial Group for $5 million.
Count bought the 7.1 million shares in nine different transactions between December 2009 and February this year.
DKN chief executive Phil Butterworth said he was not surprised by the transactions, considering the strength of DKN's performance and business model.
But he rejected the idea that Count's purchase could form a prelude to a takeover.
"If they wanted to do that they need to engage DKN's management, the board and its shareholders. They haven't done that," Butterworth said.
Much of DKN shares are tied up in shareholdings of Zurich Financial Services and IOOF, which have 31 per cent and 19 per cent respectively.
In a pre-emptive measure against any speculation over whether Zurich or IOOF would be selling their stakes, Butterworth said both firms were committed to DKN's current strategy.
The remaining 45 per cent of DKN is held by a number of small cap fund managers, small shareholders and staff.
