Magellan's Board of Directors reduced reporting of outflows in March 2021 from monthly to quarterly. This was one of many indicators of Magellan's eventual downfall (June 2021 was Magellan's last annual high). If they reduced FUM reporting again, it would ring alarm bells for management accountability and shorting would accelerate - IMO. Perpetual, Pendal and some others report quarterly.
The only thing that will make a difference to current shareholders is to perform better and stem outflow bleeding by reducing management fees. It might impact profitability, but better to keep FUM at current levels than this continuous loss.
Will the Magellan Board of Directors act in a rational manner? Time will tell, however Board needed to have lowered fees six months ago. Retail FUM would have had a higher probability of staying constant - $30.9B instead of $18.9B.
Liquidation value of Magellan is between $5.60 and $6.00. This will be when shorters will stop (or a rational shorter).
Best of Luck Lost
MFG Price at posting:
$8.68 Sentiment: None Disclosure: Not Held
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