Magellan should return capital to win back investors: Sandon

AFR

Magellan should return capital to win back investors: Sandon

Sandon Capital says Magellan should abandon its plan to rebuild its funds under management to $100 billion and instead focus on returning at least $300 million to shareholders.

James Thomson Columnist

Jun 27, 2023 – 5.00am

Activist investor Sandon Capital says Magellan should abandon its plan to rebuild funds under management to $100 billion, and instead focus on returning at least $300 million to shareholders as part of a broader push to restore investor faith.

Sandon argues that Magellan, which has suffered a share price plunge of almost 90 per cent to $8.61 since the stock peaked in February 2020, could be worth more than $15 a share, even if FUM grows only marginally from the $41.4 billion reported earlier this month.

Magellan’s FUM peaked at $116 billion in November 2021, as the company rode the pandemic boom in growth stocks under the leadership of co-founder and former chief investment officer Hamish Douglass.

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