Just curious, they have lost 2/3 rds of their FUM. How do you...

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thebarry111

4,643 Posts.

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23/01/23

09:08

Post #: 65824073
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Originally posted by mobius76: ↑

I wonder how many people watched The Big Short and if they remember that investors were screaming at Michael Burry as his bets on the housing market was burning his fund at an incredible rate because of the swap premium it was burning. Ultimately he was proven correct. The difference is Burry had it in his contract that the fund can stop redemptions while Magellan can't. Burry also had steel balls to keep holding.

From what I can gather from this forum, MFG lost a mandate because it was underperforming the broader market. There were also complains about fees compared to the low expense ratio of ETFs. Some mentioned it's because it was involved in the unstable Chinese markets, others mentioned the arrogance of Hamish. All valid points I guess. But I think it would be foolish to think that investment banking, hedge funds, family offices and high frequency trading are dead, and the value of an analyst's report is worthless. That's in line with Michael Burry's view that a blind faith in ETFs creates distortions in the market. Bad companies gets bought up with good companies because they are in the same index.

For MFG, I think I have not seen many debt free companies gone under in 1-2 years. Maybe that is the time horizon they need to rebuild their reputation.

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Just curious, they have lost 2/3 rds of their FUM.

How do you see them winning back this FUM?

If you can't answer the above then it's hard to find a case why you would be buying this thing.

The next 12 months are going to be really difficult across the board for people trying to manage their cash flow, if anything you would assume that there will be a net outflow from markets as people try to manage cash flow. We have already seen that in the beloved ETF flows from last quarter.

MFG Price at posting: $9.22 Sentiment: Sell Disclosure: Not Held
3 Upvote

0 Great analysis

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