In this context, their sale is trivial.
But it goes back six months, the week before Christmas. Indignation arose from the great man. The naughty suggestion that he might soon be a Magellan stock seller was “simply absurd.”
“We’ve never sold a single Magellan stock,” he said boiling.
Absolute conviction
Look, now, at his absolute conviction. This didn’t last long, though it lasted a damn sight more than “I haven’t found any institutional investor who has questioned performance. [of Magellan’s global strategy] for the past 12 months, “which lasted 13 days until St James’s Place took out its $ 23 billion mandate, sending Magellan (and Douglass) into the free fall.
Fifteen days earlier, the Douglas issued a public statement confirming our report of their marital separation. “We can confirm that we do not intend to sell any of our Magellan shares,” he said.
Hamish added that “I am fully committed to the business and its future.” This was the last time Magellan shares touched $ 30. He took an indefinite leave of absence in February, resigned from the board in March, left as an executive in June and his consulting contract begins in October. The stock price is now $ 13.
In December, Magellan revealed its $ 116 billion managed funds. Today, they are $ 65 billion, down 44%. Virtually all customer funds have been drained from Magellan’s global equity strategy, largely the Douglass baby, which has plummeted from $ 86 billion to $ 35 billion (59 percent less). ).
Just a critic
In December, Douglass was livid with “people … [trying to] inventing situations that are simply not true ”.
By “people,” Hamish supposedly meant me. He’s only had one critic and even that was too much to bear.
It is, once again, the gulf between what Douglass says and what he does. It adopts high principles and then acts in the opposite way.
The alienation of shares is not material in itself, but their previous intransigence — grunting at the suggestion that a single share would sell — offers them signal value.
Douglass no longer even pretends. Magellan’s talisman takes care of himself, which, by the way, he is perfectly entitled to do.
Magellan shareholders, including the board and investment team, which contracted $ 37 million in full-resource loans under the staffing plan to buy Magellan shares now with negative equity, can see very well that they are alone.