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MFF - MFF Capital Investments

Discussion in 'Stocks I-P' started by nikkothescorpio, Nov 15, 2007.

  1. nikkothescorpio

    nikkothescorpio

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    Hi,

    Just wondered if anyone has any thoughts on this LIC. They listed in DEC 2006 at $1 and are currently around $0.80 per unit.

    Headed up by a couple of very high profile lads, the former head of one of UBS's big areas and another similar guy - had a lot of 'name' money being invested with them - including James Packer, the Turnbulls and a number of others.

    COMPANY HOMEPAGE

    My interest in them revolves around having a conservative foreign investment exposure in my portfolio - apparently these guys are trying to have a 'Value-Buffett' type approach to their investment selections.

    NTA is around $1 or so.

    Had a fairly poor 1st year due to the $AUS and a few other things.

    But interested to see if anyone else has any thoughts on them at all.

    Much thanks in advance
     
  2. Rainmaker2000

    Rainmaker2000

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    Re: MFF - Magellan Flagship Fund Limited

    Interesting pickup......I'm no fan of LIC but when they are especially cheap......I can't add much just to say that my Fav. investor Peter Lynch made Magellan famous with his adept combination of value and growth investing.......'One up on Wall Street'......one of the most insightful reads ever
     
  3. shinobi346

    shinobi346

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    Re: MFF - Magellan Flagship Fund Limited

    Thanks for the heads up. Always good to be made aware of something you might have missed otherwise.

    My initial concern is, if the currency exchange rate has held the performance back, what steps have been taken to mitigate this as most analysts expect our dollar to stay high? This sounds like a medium-long termish type of fund. (nothing wrong with that)
     
  4. nikkothescorpio

    nikkothescorpio

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    Re: MFF - Magellan Flagship Fund

    Cheers for the replies.

    Yes well I too am not a huge fan of LIC's but would like some kind of OS exposure in my portfolio and can't be stuffed buying direct into OS shares - on top of the domestic ones!

    I looked at these guys and to a degree thought well if there is 'smart money' heading into them then maybe there's something there.....also their value investing approach is appealing - even though their first year results were anything BUT.

    20% down on the SP and no dividend paid. I can imagine that James Packer and the Turnbulls would have been making one or two ph calls for reassurance.

    Have seen a number of thngs recently too with the average PE ratios of Australian top stocks vs rest of the world and we're well above them now - which may lead people to believe that if you are looking for VALUE then you can find it OS more easily.

    This was also reinforced by how we bounced back much further much faster after the recent correction.

    Anyway I will keep an eye on them - am also quite happy to keep the 50% or so of my portfolio in cash at present...so watch this space.
     
  5. cbacamden

    cbacamden

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    Re: MFF - Magellan Flagship Fund

    Everytime these fall im buying more. They are well under Net Assets, and while I dont expect huge agains I think they are a good thing to be in a portfolio.

    I recon its good to see they are currently buying back their shares. Can only make their asset position better
     
  6. Bluebeard

    Bluebeard

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    Re: MFF - Magellan Flagship Fund

    This company continues to buy back its own shares. They seem to have put together an international portfolio with decent names ie. Coca Cola, Proctor & Gamble, Unilever, Google, Nestle, Pepsico, Visa, Mastercard etc.

    Trading now around 59cents. And judging by there announcements to the ASX they are trading at a discount to NTA. Im interested in these guys as a long term investment. And having exposure to the big names listed above cant be a bad thing IMHO. The AUD is a problem, and could continue to be a drag on performance but in the bigger scheme of things, this is an interesting way of getting international exposure into your portfolio and longer term the AUD may come back anyway to more reasonable levels.

    Note: I hold MFF.
     
  7. catfish

    catfish

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    Re: MFF - Magellan Flagship Fund

    Can someone explain why MFF trades at such a discount to NTA? Price has caught up I little recently although discount remains. I understand why a regular company may trade at a discount to NTA, but MFF releases weekly NTA announcements. Market is well informed and still chooses to pay less.

    Thanks
     
  8. RottenValue

    RottenValue

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    Re: MFF - Magellan Flagship Fund

    Can someone explain why MFF trades at such a PREMIUM to NTA? NTA has caught up I little recently although PREMIUM remains. I understand why a regular company may trade at a PREMIUM to NTA, but MFF releases weekly NTA announcements. Market is well informed and still chooses to pay MORE.



    Couldn't resist - market swings and roundabouts.
     
  9. Valued

    Valued

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    Re: MFF - Magellan Flagship Fund

    I don't know anything about this company but a company's NTA is a poor way of valuing it unless you suspect it may be going insolvent. Some companies have a very high NTA because they have so many assets but are not worth much at all. Reasons may be that the assets may not be able to be sold easily or at all on the open market, they have so many shares that the assets are split between too many shareholders, the company makes a poor return on those assets or the company has a lot of debt etc. A company may be worth a lot with very few assets e.g. a company that provides professional services such as a law firm. In a lot of cases, a company's assets arn't linked directly to their earnings power.
     
  10. rcm617

    rcm617

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    Re: MFF - Magellan Flagship Fund

    LOL, and who said the market was always right. Nobody wants to buy when the shares are cheap, but everyman and his dog jump on when they become expensive.
     
  11. piggybank

    piggybank

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    Re: MFF - Magellan Flagship Fund

    Important Information for Macquarie Group Limited (ASX:MQG) Shareholders

    13 December 2013

    On Thursday, 12 December 2013, Macquarie Group Limited (MQG) announced that it has received shareholder approval to undertake a consolidation of its shares and distribution of Sydney Airport stapled securities (SYD).

    The consolidation will involve the conversion of every one share into 0.9438 ordinary shares in the company (shares will be rounded up to the next whole number). The distribution of shares will involve a distribution of 1 Sydney Airport stapled security (SYD) for every MQG share held on the record date as at 7pm (AEDT) Monday, 20 December 2013. Eligible shareholders will be allocated SYD securities on Monday, 13 January 2014. From Monday, 16 December 2013, MQG shares commence trading on a deferred settlement basis (ASX code: MQGDA). On Thursday, 2 January 2014 normal T+3 trading (Three ASX settlement days after the trade) will resume (ASX Code: MQG). For further details, please refer to the Company's announcement lodged with ASX.
     
  12. piggybank

    piggybank

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    Re: MFF - Magellan Flagship Fund

    MFF ASSETsp.png
     
  13. coolcup

    coolcup

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    Re: MFF - Magellan Flagship Fund

    What is the relevance of this to MFF?
     
  14. piggybank

    piggybank

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    Re: MFF - Magellan Flagship Fund

    140122 - MFFIs.gif

    140122 - MFFs.gif
     
  15. System

    System Administrator

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    On November 4th, 2016, Magellan Flagship Fund Limited changed its name to MFF Capital Investments Limited.
     
  16. rcm617

    rcm617

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    Interesting that Chris Mackay has bought just short of one and a half million shares and over one and a half million options in the last two months. Must be confident of the US market going up or very pessimistic on the $Aus.
     
  17. kahuna1

    kahuna1

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    well ... up at its peaks 50% .... from the last post, one might say the call was correct.

    I note, Chris adds and adds and is the largest shareholder by far. He also is the second largest holder of MFG shares the Magellan now managing 70 odd billion. Over the years, in fact now over 10, if one strips out the bonus shares and options at vast discounts to the NTA this fund has outperformed the index by a fair margin ... 5-8% each and every year for the last decade.

    Not that this is correctly worked out by Morningstar .... who well is hopeless but the two other fund followers who cover Listed investments BOTH have this correctly covered.

    Given from public announcements weekly of NTA, monthly of actual holdings and NTA ... one has a very good idea via commentary of what one of the LEADING .... GLOBALLY fund mangers is thinking. He is, despite the drubbing the USA got past few months into Dec not down MUCH v the index having a cow around 8%. I note end of Dec 2018, he is leveraged and buying these dips.

    He has, unlike 99.99% of the 10,000 other fund mangers in this sector supreme discipline and turning out NOISE and extreme capital management that, well, built MFG and its fund and now he owns, not the 61.5 million shares he did in April 2018, but as of last ... 63.2 million and has been adding all during 2018. There are 541 million shares so ... a mere 12% or so . Similar ideas with MFG and putting their money where their ... interest were, and in this case, fairly low pay and no bonus structure if he beats the market, given he already has a large pile their .... one could do a lot worse.

    So of the 10,000 pr so funds, listed and unlisted with similar long only ... and decent discretion, less than HALF after costs even hit the index. Sure second half to Dec will NOT be a positive one given the shellacking the USA side got, but, its tiny v the index and since then, of course ... well the magic rallies off the lows and the AUD had a cow for a day below 70 cents. how many of the 5,000 beat the index evne by any margin year in year out ? less than 20% . Ones that exceed it by 2% are well under 5% and 4% 1% so a mere 100 out of 10,000. Not many if any ... I could find with, well 5% plus, those I did were highly leveraged ... 100% or so ... and that was only one which still was beaten ... by this guy.

    Got to love him ..
     

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