Valuation still looks convincing, page-27

In my opinion this is a different argument.
I think you will find in the years to come there will be plenty of fund managers that outperform the S&P, because the gravitational weight of passive index funds is becoming too great.

But this won't necessarily help Magellan, as the key focus on their funds, is quality companies., with the assumption that quality always outperforms.

The problem is that quality is very expensive, and so might not outperform.

Price is what you pay, value is what you receive. Overpay, even for quality, and future returns will be sub-standard.

Year 2022 has been characterized by cyclicals, unloved for so long, especially energy. Does MFG funds have any exposure? NOPE.
So another year of under performance coming.