Last nights trade on Wall st was a great mini illustration of...

Last nights trade on Wall st was a great mini illustration of Hamish’s downside protection in play.

Big tech looked this :





Counterbalancing stocks in the Magellan portfolio looked this :




You just have to be in big tech - there’s no question - but it will have it’s wobbles from time to time. You can’t even rule out a major correction in this particular sector but as a MFG and MGF holder I’m comforted by the defensive protection demonstrated above.

Anyway that’s all about funds management - the exchanges on this thread are very much focused on that - which is fair enough - it is the main source of profits currently.

However I think what Hamish has recognised is that funds management is, and will continue to be, a very competitive space. That’s why he has diversified into select direct investments (Barranjoey/GYG/Finclear) I trust his smarts on this and am banking on this component of the business growing to represent, in time, a significant proportion of MFGs profits.

This is the mini Macquarie thesis - and that is certainly not recognised in the stock price at the moment......though the financial media seem to be picking up on the fact that Barrenjoey is quietly establishing itself in the M&A space.

So right now I see MFG as still majorly undervalued - the sell off was savagely overdone and the grind back upwards is now underway.