Hi
@asxunsulliedHere are my thoughts:
- You don’t look at the portfolio construction. Consider reviewing what Ray Dalio does at Bridgewater compared to Magellan. My opinion is that Bridgewater has a solid proven style for riding out economic cycles (lower highs during Bull markets and higher lows during Bear markets), Magellan’s portfolio does not have these attributes.
- Don’t think ETF’s are much of a risk. If Magellan fund investors were looking for low cost/low performance they would not have invested in the first place. Investors pre-2017 sought higher returns for a higher fee, any investor after this were sucked in by the stability story, high cost/low performance.
- For convictions 1 to 3, assume an idiot is running Magellan and doesn’t change the portfolio structure, wouldn’t it run just the same?
- Another item to think about is, what is the impact if FUM stays at $93B? Financials, staff reduction, anything else.
Thoughts for what they are worth.
Best of Luck
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