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MGF

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$2.21 magellan global fund.

Ann: MGF Fund Update - February 2021, page-480

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cutty

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31/01/23

17:50

Post #: 65984773
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Originally posted by Hoarding: ↑

They are playing it very safe! The portfolio is now significantly less concentrated, reduced giant-tech weightings, increased consumer staples brands, increase cash weighting and the recent addition of UnitedHealth Group. They know they can't have another stock specific disaster and have now essentially removed this risk.

Their play book for them from here is:
Don't take big bets. De-risk the portfolio. Reduce concentration.
Stabilise returns and build back investor support (discount is still 18%)
Convert to an open ETF once options expire in 2024.

My playbook from here is:
Not expect market beating returns from the underlying portfolio
Not expect any disasters
Wait for the conversion to open ETF in 2024
Earn a greater yield while I wait due to the discount to NAV
Sell at NAV in 2024

The downside risk (relative to the market) here is very low.

The fund is still holding most of the same stocks from pre Douglas' departure.

Top 10 holdings December 2019 = 54.1%
Top 10 holdings December 2022 = 41.8%

Expand

They will NEVER convert to an open ETF.

Why would they kiss goodbye the capital, knowing everyone wants out.

Their response to not converting was just a smoke screen to get people to stop asking.

Once a manager has a LIC on their books they never let it go.

Closed funds are the ultimate free lunch for underperforming managers.
MGF Price at posting: $1.39 Sentiment: None Disclosure: Held
1 Upvote

0 Great analysis

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Ann: MGF Fund Update - February 2021, page-480

Top Stories

Buxton projects new graphite province discovery at WA Narryer play

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

Recce eyes Indonesia for novel anti-infective as Indo-Aus ties grow stronger

Neurotech knocked back by FDA as agency declares target condition not rare enough for special status

Week 40 Wrap: China's nonsensical stimmy hype wanes (shocking!); HotCopper's picks; oil & inflation

BCI reaches close of funding facility for salt-first part of Mardie project

Cokal upgrades infrastructure for BBM ramp-up in Indonesia

Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

White Cliff jumps 24% on 'bonanza grade' copper rock chips at Rae project, Canada

Solstice Minerals to ramp up drilling campaign at Yarri Gold Project

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