You know I ask myself whether if Magellan had stayed the course...

You know I ask myself whether if Magellan had stayed the course on its Big Tech (incl China tech) bias whether I’d still be a holder. It surely would’ve lost tens of $billions more FUM than it has and with everything unravelling so spectacularly last year you’d have needed balls of steel to ride it out. I probably would’ve jumped with all the lemmings with MFG possibly spiralling below $5.

Yet looking at what is happening now you wonder if bottoming out at say $4.50 and riding the Big Tech/ China recovery back up might ultimately deliver a better outcome than what the current strategy looks like delivering.

I’m not really being critical - how could the Magellan board and management have possibly just stuck with the big tech strategy while incurring such massive FUM outflows ?

I guess this is the biggest lesson I’ve learnt from my Magellan experience…..that ultimately it’s really the big investors in your funds that control your destiny. You can’t say to them ‘stick with us - things will turn around’ …….they will just pull their investment if there are seemingly better returns elsewhere. There’s not a lot of patience or long term thinking involved.

Of course now that Magellan is completely loaded up with conservative food/finance and other multinationals it is mostly missing the tech bounce (Meta/Facebook …one of its top holdings not so long ago ….up 55% since Jan 1 FFS !)

This is what has happened YTD this year to the top holdings from 18 months ago.



Sadly, it's starting to look like the decision makers at Magellan might’ve got their strategy and timing totally wrong all over again….I’m sure they’ll be praying this tech recovery fizzles out fast.