The Macquarie Group Ltd (ASX: MQG) share price is up 0.32%, closing out Monday at $202.60 per share.
The S&P/ASX 200 Index (ASX: XJO) is in the green as well, up 0.35%.
But, so far in December, the Macquarie share price has outperformed the ASX 200, with Macquarie gaining 3.58% compared to a benchmark gain of 2.27%. A trend we've seen playing out all year.
Image source: Getty Images
New capital and new management
The Macquarie share price ended last month on a high note. Shares gained 1.4% on 30 November when the banker, financial advisory and fund manager announced it had closed its share purchase plan (SPP). The SPP successfully raised $1.3 billion in new capital.
The 6.8 million newly issued shares from the SPP began trading on the ASX on Monday 6 December.
The company also received a boost early this month with a new management announcement.
On 2 December the Macquarie share price finished the day up 1.5% after reporting that former Reserve Bank of Australia (RBA) governor Glenn Stevens will replace Peter Warne as the new chairman of the Macquarie board. The management handover will take place in May 2022.
What this expert said about the Macquarie share price
As part of The Motley Fool's ongoing Ask a Fund Manager series, we interviewed Kardinia Capital's portfolio manager Kristiaan Rehder, in mid-November. (You can find the full 2-part interview here and here.)
One of the questions we posed was, "If the market closed tomorrow for 5 years, which ASX shares would you want to hold?"
Rehder told us he thought the Macquarie share price had further to run:
It's very hard to go past Macquarie. Macquarie's performed very strongly. It's a core holding of ours; we've held it for many years.
Its annuity business now makes up around 60% of group earnings. It's really shifting away from being a business that was largely a market-facing business to one that's much more stable. Its assets under management continue to grow.
It has good exposure to infrastructure and green energy. Around a $1.8 billion investment in these sectors is currently held on its balance sheet. It provides an ongoing pipeline of profits on asset sales over time. Returns across the business remain high. So it wasn't a huge surprise to us that they launched the recent capital raising.
The sort of returns Macquarie is currently making, it certainly has the potential to create significant shareholder value through time.
Macquarie share price snapshot
The Macquarie share price has gained 45% in 2021, well outpacing the 11% year-to-date gains posted by the ASX 200.
Macquarie also pays a 3% trailing dividend yield, 40% franked.
