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Query from happy Under the Radar Subscriber re Magellan Financial Group24.01.2013

We respond to queries and thoughts from subscribers all the time, but I thought this one might be of interest in case you hold Magellan Financial Group - a listed managed fund run by two ex-UBS corporate financiers. We have mentioned it quite a few times

Hi

 
I bought MFG @ $2.07 on 01 June 2012 based on a Radar article in The Age on 31 May.
 
So far .... very good.  It is now about $6.75
 
There is soon to be a distribution of scrip in MFF and MFGO in early February .... and I am not too clear why the MFG share price rocketed since the announcement, or whether the price will collapse after that distribution ( which includes a franking credit).
 
I would appreciate your thoughts on this.
 
Thanks
 
ps  ... this gain has paid my RADAR subscription many times over ....

Radar's reply:

Thank you for your email.


MFG has been running (and will continue to run) because it’s considered to be the next Platinum (Kerr Neilson’s funds management vehicle – and it has a long way to go to get there).


More to the point, it will be considered until it falters.


If it was me, I would take my costs off the table (the amount you invested) and let the house money run.


Please feel free to contact me at any time.


Best wishes


Richard.





About the Author

Richard Hemming

Investment analyst and Editor of Under the Radar Report

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