After reading everyone’s input, I will double down if it dips below $20. I don’t have much skin in this one as it was just a punt but I do think that the market has priced in some pretty serious outflows. Hamish has been wrong on a lot of things the last 18 months but even my broker at MS has been wrong on a lot of things. These institutions are still trusted by people and the reason why SJP pulled out is unknown. The overall performance of Magellan for investors over the last few years hasn’t been terrible. The company has no debt and though they have fallen short of the benchmark, their business is evolving to different areas. Hamish knows markets and company structures and boards and equity markets and also has significant money invested in mfg.
These days any clown with a stock opinion has become a Hamish, but time in the market will expose 99% of these people just as they are- stock punters who got lucky during covid. Me being one of them. A lot of analysts would have ran their ruler on this already for the possibility of SJP withdrawal. Mfg has been getting slammed the whole year pricing in further bad news and yesterday there is a chance we reached total capitulation.
Markets will be volatile over Christmas but a lot of things have already been factored in. Best yet is that there is still a big pool of money waiting to be deployed. With the normalisation of rates and strong fundamental economies, a fund like mfg will be close to outperforming again.
Anyways, this is a punt and I do think there is a reversal here. Is it now? Well we will see but I’m ready to throw another 10k at it just for fun .
gltah and dyor
MFG Price at posting:
$19.70 Sentiment: Buy Disclosure: Held
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