Buying Magellan (MFG)

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Question asked 25/09/2021

Buying Magellan (MFG)

Hi a Question for Saturday , I am light on tec stocks ....but I do have MFG I think the U.S dollar will fall and the Aussie will go up if I am right what affect would that have on MFG? and what stocks would benefit in your portfolios ......also BVS or DTL as a buy or neither ?.....do you still like MFG ? Good call on the Coal I followed you into WHC and I know you copped a bit of flak from the Brainwashed by media brigade. Thanks Regards Glenn

Answer

Hi Glenn,

Thanks on the coal thumbs up! MFG hold a large portion of their portfolio’s in US stocks and especially tech – some portfolio’s are currency hedged some are not. MFG earn fee’s in AUD however the value of unhedged portfolios will of course be impacted by currency so rising $A will hinder their returns and appeal – we are also bullish the $A. I like accumulating MFG into weakness as I think they are a quality operator but I wouldn’t underestimate its downside risk short-term.

As for Bravura (BVS), which we hold in our Growth Portfolio, it’s a position we are looking to exit as opposed to increase while Data#3 Ltd (DTL) looks neutral around the $5 region in our opinion.

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Magellan (MFG)

LAST UPDATED 24/09/2021 15:49

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