Hi @madamswer thought I would bring you into this discussion in case you have a good handle on MFG or fund management businesses in general. I generally hunt for beaten up quality companies which may be mis priced by the market on a short term valuation basis, but it can be a dangerous occupation! I got burnt on A2 milk and it hurts!
I may have brought WPL to your attention and from my limited research and knowledge, MFG seems a good investment in the longer term. Best of breed and paying the price for being conservative during COVID although that is their stipulated strategy. Hamish Douglass missed the boat back in October last year and for a change all the other average funds seemed to get it right. I have listened to many of his investor updates and podcasts and he seems a very logical, focus and balanced individual.
MFG have also bought into a few business off their own back which I think is interesting in the longer term as it could resemble a Berkshire sort of model.
I think in general this discussion, all us posters should try to evaluate the negatives for this thesis as we are all aware of the many positives. In my view they are as follows and I would encourage others who are well educated on MFG to share their views as well.
1. Missed performance back in OCT last year and possibly still paying the price. 2. The FUM inflow and outflows are a challenge, even more so as I believe the Magellan management fees are on the higher side which inst great when you are under performing the broader market. 3. FUM is over $115B and always a challenge to grow from that number, possibly why they went into Barrenjoey and G & G investment. 4. If FUM and performance is challenged, then dividend of MFG will come down. 5. Hamish Douglas is highly respected but it is a double edge sword, if he were to ever step down from the role MFG could get hammered. 6. From what I gather he is quite focused on China and at the moment this is concerning given the CCP actions on its own tech giants. I am not sure from all his funds how much is allocated to China but I would think it will be significant.
Opening it up to all and also @madamswer as I have found your posts on CSL and WPL informative but also educational. Cheers
For disclosure I bought a 15K small parcel at end of trading today. Thus, the watch MFG tank next week!
MFG Price at posting:
$34.72 Sentiment: Buy Disclosure: Held
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