Out of favour fund manager MFG rallied +4.4% yesterday, only 48 hours after it was flagged as being worth $15 a share by activist investor Sandon Capital in the AFR. The logic centred around the company consolidating its FUM and returning around $300mn of invested funds to investors. They have a similar view to our own, although we have a lower valuation for their principal investments than the more bullish Sandon.
We now own MFG in both our Flagship Growth & Active Income Portfolios as a recovery/valuation play, it’s very early days but things feel good at the moment as equities continue to overpower the numerous bears.
- We like MFG believing the next 30% move is far more likely on the upside.
MM is long and bullish toward MFG
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