Hamish Douglass didn’t make the cut of billionaires in this year’s Rich List 200,but he did OK on his family’s long-held Double Bay house on Thursday night when it sold for about $30 million.
With each major announcement made by Magellan the imprimatur of Hamish Douglass further fades.
Magellan’s shares have jumped over 12 per cent after it reported funds under management had increased,after months of sharp outflows.
Hamish Douglass’ aversion to the limelight is understandable given he has now experienced the negative aspects of fame.
Magellan’s problems are in a league of their own. In the space of six months its funds under management have dived by 40 per cent.
Magellan co-founder Chris Mackay has vowed not to change the fund manager’s approach to stock-picking after it suffered another $5.5 billion in outflows.
The fund manager’s shares were up as much as 6 per cent to $17.41 despite UBS analyst Shreyas Patel putting a ‘sell’ rating and a $17 target price on the stock.
Magellan’s high-profile board and executives have shared investors’ pain over the share price collapse as they hold more than $15 million in loans used to acquire shares at vastly higher prices.
Hamish Douglass’ celebrity status was an asset for the years when Magellan was building its brand and growing its funds under management. The downside is that when the guru underperforms,there is nowhere to hide.
Shares in the Sydney fund manager have fallen to a seven-year low as founder Hamish Douglass takes medical leave after a period of “intense pressure and focus” on both his personal and professional life.
Magellan’s share price fell by more than 7 per cent as founder Hamish Douglass said investors should not read into market downswings and focus on the long term.