The Magellan Financial Group Ltd (ASX: MFG) share price is struggling again today.
So much so, that it hit a new 52-week low of $37.31 in intraday trade.
At the time of writing, the Magellan share price is $37.63, 2.71% lower than its previous closing price. Today’s fall follows the fund manager‘s stock’s 2% plunge yesterday.
In comparison, the broader market has seemingly recovered from its disastrous start to the week.
After falling 2.1% yesterday, the S&P/ASX 200 Index (ASX: XJO) spent much of this morning in the red before pulling up this afternoon. Right now, it is 0.15% higher.
Similarly, the All Ordinaries Index (ASX: XAO) has recovered to trade 0.15% higher than its previous close.
So, what’s been weighing so heavily on the Magellan share price today? Let’s take a look.
What’s dragging the Magellan share price down?
Magellan’s stock has plummeted again today despite no news having been released by the fund manager.
However, as The Motley Fool Australia reported yesterday, the fund has been underperforming as China has cracked down on some of its major holdings.
Additionally, Magellan has retained its high fees amid its struggles and a number of analysts have downgraded the fund’s stock in recent months.
Market watchers might have had hope Magellan’s funds under management update for the month of August, released just over a fortnight ago, could have seen its stock recovering once more.
Magellan’s funds under management increased 0.79% over the month of August, reaching $117.95 billion worth.
However, the market seemingly wanted more from Magellan, evidenced by its share price’s 0.6% dip on the day of the announcement.
Though, this last month’s poor performance isn’t out of trend for Magellan. The Magellan share price has fallen 29% since the start of 2021, despite what looks to be a slight recovery over May and June.
In fact, it has been falling relatively steadily since mid-November 2020, a month after it hit its 52-week high of $64.44.