Is it worth selling MQG and buying MFG?
Hi James Love your work .To (kind of) quote a bloke most people have heard of. At these prices do you think that MQG is now an opportunity of selling to the greedy and MFG being buying from the fearful? Danny
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Hi Danny,
While these are two different businesses with some cross over in funds management, the risk/reward fits with your thinking. We see the ‘silver donut’ as expensive above $200 relative to its own history and especially relative to other global investment banks, although if markets run into Christmas, MQG will to. Magellan (MFG) on the other hand has been battered of late with some well documented issues. We see value in MFG below $30, we recently added it to our income portfolio around $33 with a small 3% weighting, with the view to add to this position in time.
