This talk of emerging markets .....of Russia and Latin America....I’m not sure what point is being made here.
There will always be high risk/high return funds that will outperform the Magellan funds but some of these high risk/high return funds will crash and burn as well. This is just not the market that Hamish is chasing - he has leaned more towards capital protection in the last couple of years and has been quite open about it.
His focus is more about attracting and retaining the $trillions out there in baby boomer wealth. These people aren’t interested in double or nothing bets in emerging markets (just like they wouldn’t be interested in crypto investments either) They are in their twilight years and want steady returns with some capital growth but more so capital protection ....and they generally won’t jump ship after one bad year either.
That’s why I think this selldown is massively overdone. The double or nothing funds have had a golden run and enticed away some Magellan $ - so what - many of these funds will get wiped out in a market downturn.
Magellan is very well placed to manage its way through a market downturn and actually grow FUM strongly coming out the either side of one.That’s why I have been buying sub $40....as recently as yesterday.......playing a long game on MFG.
MFG Price at posting:
$32.52 Sentiment: Buy Disclosure: Held
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