MFG has undoubtedly received the most press through 2022 as its stock collapsed following the turmoil and departure of co-founder Hamish Douglass. Even after bouncing almost 10% yesterday the $3.1bn fund manager is theoretically cheap trading on just 8.25x but if it keeps losing FUM at the rate it has that won’t be the case in a few months’ time. Tomorrow is the last day to buy MFG to receive the free bonus option for every 8 shares held, and while this is certainly not a reason to buy the stock, we believe it will help align both investors and employees over the coming years.
GQG Partners (GQG) is a global fund manager that listed last year on the ASX and has a current market capitalisation of $4bn managing ~$90bn in assets. MFG has a market capitalisation of $3.1bn managing $77bn. We can’t help but think a scrip deal here from GQG could be a good outcome for MFG’s current woes, creating a significantly more diversified global fund manager, with scale.
MM likes MFG at current levels
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