Don't get me wrong. I think they have done almost everything right, except perhaps that one thing, and even then that has been to the benefit of investors rather than themselves. But if they had their time again I am fairly sure they would have retained a much higher stake in MFG. The FUM business requires little capital to run so there is actually no need to give away so much of the business upfront. Even start-ups that go with the likes of Treasury etc retain greater than 60% of the business to start with. Ask around in the FUM business and you will find it is pretty well known that this is the big comparison made to PTM and that the founders are a bit cheesed off about it.
I still like the stock. With the flows they are getting and performance holding up quite well (according to people I talk to, surprisingly well) the game can continue to roll on. The currency has popped up as a headwind but shouldn't offset the very strong flows for too long.
MFG Price at posting:
$13.72 Sentiment: Hold Disclosure: Held
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