The rise and fall of Magellan and Platinum: Lessons for investors (podcast)
In Episode 34 of Stocks Neat, Portfolio Manager, Gareth Brown, and I take a deep dive into the challenges facing active fund management giants Magellan and Platinum, and the lessons for investors seeking long-term outperformance. They unpack what’s gone wrong, the rise of ETFs, and why small-cap opportunities remain a crucial edge for Forager.
The discussion explores industry trends, the impact of fund size on performance, and how Forager stays nimble in an increasingly passive market.
“Outperformance in active management is hard to find. It’s about being different and being right, which becomes increasingly difficult as funds grow larger and markets shift.”
0:00 - Intro and discussion of market trends, including the year-end performance and potential turbulence ahead
4:00 - Analysis of the funds management industry, focusing on profitability, risks, and challenges for firms like Magellan and Platinum
10:40 - The importance of forward-looking analysis in fund performance and challenges posed by fund size
23:06 - Guest Chloe Stokes discusses investment philosophies, biases, and the importance of process updates
32:12 - The impact of passive investing on markets and the evolving role of active management43:47 - Balancing growth and performance in funds management, including capacity constraints and team expertise
Explore previous episodes here. We’d love your feedback. If you like what you’re hearing (and what we’re drinking), be sure to follow and subscribe – we’re doing this every quarter.
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Steve began Forager Funds in 2009, and now manages approximately $400m across two funds. The Forager Australian Shares Fund and Forager International Shares Fund are both unlisted and are available to investors with daily applications and redemptions. Steve focuses on long-term investing in undervalued and sometimes unloved companies.
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Steve began Forager Funds in 2009, and now manages approximately $400m across two funds. The Forager Australian Shares Fund and Forager International Shares Fund are both unlisted and are available to investors with daily applications and...
Expertise
Steve began Forager Funds in 2009, and now manages approximately $400m across two funds. The Forager Australian Shares Fund and Forager International Shares Fund are both unlisted and are available to investors with daily applications and...
Expertise
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