Hamish Douglass said the besieged fund manager can recover from the shock loss of its biggest institutional client as its shares tanked 30 per cent to a six-year low.
that had borrowed more than 8 million shares to short-sell, netting an estimated $75 million gain.
Research house Lonsec also warned of further client outflows. “We have further lowered our valuation and are wary of additional mandate losses,” wrote analyst Luke Conca in a report on Monday. Magellan sources said no other material mandates other than SJP had been lost in recent weeks. But it is understood the fund manager was working hard to stem outflows from other institutions, as well as smaller family offices and wealth management firms.
Meanwhile, independent financial advice firms – which have been loyal distributors of Magellan’s products since the company was founded in 2006 – have continued to pull clients out of its troubled funds.
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