MFG in the BUY zone, page-339

Exactly.......looks like a very opportunistic listing to me.

There have been many references to GQG on this forum over the past couple of weeks . For those unaware GQG is a US based investment company similar to MFG that will be listing on the ASX later this month.

From my reading and research GQG is a similar size to MFG and it’s recent returns have in fact been considerably better. This is because they took the other fork in the road at the start of the pandemic - ie invested aggressively - and its paid off.

That doesn’t mean, going forward, GQG will continue to pay off however from their perspective this is the perfect time to list.....when your aggressive strategy is showing superior returns.

Hamish took the other fork in the road. He de-risked and held cash and the market took off on him. This has largely been the reason for the plateauing of FUM and the falling away of the share price.

GQG is serious competition- no doubt about it - but I suspect it will be hyped up based on recent returns and overvalued from the get go.

MFG on the other hand has been mercilessly beaten down on the basis of its FUM and fees being supposedly under pressure from other better performing funds (incl GQG) but I believe this market crunch on MFG has been way overdone now and the 5% bounce on Friday shows there are others now sharing that view. I just don’t believe MFGs FUM are as threatened as this selldown would suggest.

It’s easy to be a successful stockpicker when you’re being aggressive in a bull market. GQG have done this and are listing now on the strength of it - I’d be very wary of that.

I’m sticking with MFG and I think if you have a 3-5 year horizon you’re likely to see a 20-30% market correction at some point. That’s when the Hamish model will make the GQG model look almost reckless and the Magellan funds will enjoy a new era of FUM growth.

I’ll watch the GQG listing with interest and I suspect it will look the better bet short term but medium to long term I’m backing MFG.