Well before things went wrong for global stocks last year, one US$9 billion ($12.6 billion) fund manager decided it was time to play safer, and nothing he sees now convinces him to change that call.
Hamish Douglass, whose Magellan Global Equity Fund beat 99% of peers over the past five years, boosted cash to about 14% of assets by April to prepare for the “stiff headwind” he expected in share markets. He’d been sensing danger as far back as mid-2014. The stock-picking chief executive officer of Magellan Financial Group Ltd. now has almost 16% of his fund in cash, matching the biggest proportion since 2009, and no immediate plans to buy shares.
“We’re happy to bide our time in the cash position,” Sydney-based Douglass, 47, said in a phone interview. “We took a lot of our action well before any of this turmoil started.”
Global stocks began a downturn in May that intensified three months later with China’s shock currency devaluation. The situation got even worse from around the turn of the year as a combination of tumbling oil prices, concern about the slowdown in Asia’s largest economy and a selloff in bank stocks sent the MSCI All-Country World Index into its first bear market in five years. Douglass is still wary, but for different reasons.
The US$5.4 billion Magellan Global Equity Fund is the largest of the US$9.1 billion in funds that Douglass directly oversees, according to data compiled by Bloomberg. Magellan itself manages A$38.9 billion ($39 billion) in assets. The global fund has gained 0.4% over the past year to outperform 90% of its competitors. The MSCI All-Country World gauge lost 13% in that time. The fund returned 17.8% per year over five years, beating 99% of peers, data compiled by Bloomberg show.
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Hamish Douglass, whose Magellan Global Equity Fund beat 99% of peers over the past five years, boosted cash to about 14% of assets by April to prepare for the “stiff headwind” he expected in share markets. He’d been sensing danger as far back as mid-2014. The stock-picking chief executive officer of Magellan Financial Group Ltd. now has almost 16% of his fund in cash, matching the biggest proportion since 2009, and no immediate plans to buy shares.
“We’re happy to bide our time in the cash position,” Sydney-based Douglass, 47, said in a phone interview. “We took a lot of our action well before any of this turmoil started.”
Global stocks began a downturn in May that intensified three months later with China’s shock currency devaluation. The situation got even worse from around the turn of the year as a combination of tumbling oil prices, concern about the slowdown in Asia’s largest economy and a selloff in bank stocks sent the MSCI All-Country World Index into its first bear market in five years. Douglass is still wary, but for different reasons.
The US$5.4 billion Magellan Global Equity Fund is the largest of the US$9.1 billion in funds that Douglass directly oversees, according to data compiled by Bloomberg. Magellan itself manages A$38.9 billion ($39 billion) in assets. The global fund has gained 0.4% over the past year to outperform 90% of its competitors. The MSCI All-Country World gauge lost 13% in that time. The fund returned 17.8% per year over five years, beating 99% of peers, data compiled by Bloomberg show.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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