Magellan often market themselves as the defensive downside...

Magellan often market themselves as the defensive downside protection manager.


This is the current positioning of the high conviction fund Nov 2021


Cash 1%, If you combine internet, IT and eCommerce it's 74% of the portfolio. Very well balanced and positioned for the imminent market decline magellan keep fear mongering about...



Compare this to May 2020, 2 months after the covid crash


They panic sold down their holdings to increase cash to a quarter of the portfolio (When in reality after the downturn has already occurred they should have done the opposite, I admit easy to say with hindsight).

If Hamish is right about his prediction of a downturn (same prediction he's had for the last 14 months) magellan investors aren't in the position they've been lead to believe.

It shows me they are trying to chase short term performance after the underperformance of the second half of 2020 and all of 2021.
Downside protection is a marketing tool at the end of the day, I wouldn't want to be invested in this vehicle especially when you consider the fees are 1.50% + 10% Performance fee. It's even worse when the fund positioning doesn't even match the objectives and commentary, something seems off about it all.

Just thought it was an interesting observation

Cheers,
Plague.