It is unfortunate to lose such a big account. There has to be underlying problems other than just underperformance and pumping money into ventures with lofty valuations.
I've personally met Hamish at an event some time ago, and he is quite a sharp person. He fielded my questions with ease although he knew the answers. The problem with the money management business is that the less funds you manage the less laser-sharp staff you have in your offices and then it becomes a spiral.
It is sad to see sharp people like H.D get punished for taking measured approach with big monies and nothingness people Miss Wood in the US get rewarded to overhype stock. The garbage that comes out of her mouth is nothing more than spectacular.
However,
The outflows have begun and the lofty valuations stock are heading for a decline coming year so there's two massive headwinds for Magellan funds. The approach of risk management by managing sitting cash waiting to punce is not going to work either. Cutting fees will help but share price will take a further hit.
I'm more worried about what BC knew before exiting the company.
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