Magellan founder says ignore ‘emotional’ sharemarket as stock tanks

Embattled fund manager Hamish Douglass has called on investors to ignore sharemarket volatility and warned against reading into downswings, during a presentation where his own company’s share price tanked.

The Magellan founder said on Thursday that equities markets were “emotional” and investors should avoid being spooked by short-term price fluctuations because investing is a long-term game.

During the virtual Morningstar event where Mr Douglass delivered some of his first comments since turmoil engulfed his company late last year, Magellan’s share price fell by more than 7 per cent to $18.48 per share.

During the presentation, a series of questions were posted by attendees in an online forum asking Mr Douglass to “address the elephant in the room” of Magellan’s falling share price and internal problems.

“This is a frustrating avoidance session,” one said. “Can’t believe his confidence given the disastrous performance of Magellan!!” said another.