Things that were previously a tailwind for MFG are now a headwind.
They are on the wrong side of the USD/AUD exchange rate. They actually had a hedging mandate on MGG and MHH but dropped it. This may prove to be an expensive mistake for MFG and clients.
With a large amount of FUM in the extended FANG family they have benefited by some serious PE expansion that occurred in the long cycle of falling interest rates. With rates now at bottom and bond yields pushing higher FANG have some PE contraction ahead of them.
Magellan are having their Platinum moment in my opinion.
Every fund manager has a cycle that they are well positioned for but rare to find a fund manager who gets great returns over many different cycles.
MFG Price at posting:
$47.57 Sentiment: None Disclosure: Not Held
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