Why did the Magellan (ASX:MFG) share price smash the ASX 200 today?

Magellan has had a tough run recently but today brought welcome relief for investors

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As we round out this Thursday’s trading, the Magellan Financial Group Ltd (ASX: MFG) share price appears to be one of the standout performers on the S&P/ASX 200 Index (ASX: XJO).

The ASX 200 finished the trading day with a gain of 0.02%. Meanwhile, Magellan shares finished up by 2.31% to $36.38 a share.

Magellan is a company that has been on struggle street in recent times. It’s still down by just over 31% in 2021 so far. It’s also down by an even worse 39% over the past 12 months.

So what’s gone right for Magellan today that could have sparked this ASX 200 outperformance?

Why did the Magellan share price beat the ASX 200 today?

Well, it’s not entirely clear. There are no price-sensitive announcements out of the company today. However, Magellan did release a CEO’s presentation and chairman address from its annual general meeting this morning. This might have influenced investor sentiment today.

These addresses were a mixture of discussions around the company’s FY2021 earnings results. They also looked at where the company is heading to next.

Perhaps the most pertinent of these came from the chairman’s address. This was delivered by Magellan co-founder, chair, and chief investment officer Hamish Douglass.

Douglass said he sees “significant opportunities to grow our core Funds Management business across five product areas outside of our global equities franchise”.

These are ESG/Sustainability, the MFG Core series of exchange-traded funds (ETFs), the new FuturePay retirement product, Listed Infrastructure, and through its Airlie subsidiary.

Douglass stated that “to some extent launching new strategies is like a snowball in that they start small and once they gain traction and critical mass they can gain scale quickly”.

Douglass also discussed Magellan’s emerging Capital Partners division. He highlighted the 40% stake the company now has in Barrenjoey Capital Partners Group. That’s as well as the 12% shareholding of the fast-food chain Guzman y Gomez, and the 15% stake in FinClear Holdings Limited. On this side of Magellan’s business, Douglass reckons “while it is still early days, we believe Magellan Capital Partners is firmly on track”.

We don’t know for sure whether these presentations today have positively affected Magellan shares. But it’s very possible, given the lack of any other developments around this company today.

At the current Magellan share price, this fund manager has a market capitalisation of $6.58 billion.

Should you invest $1,000 in Magellan right now?

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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