Magellan Financial Group is an Aussie investment manager founded back in 2006.
Background: Magellan Financial Group is an Aussie investment manager founded back in 2006. It's seen as one of Australia's biggest investing success stories.
What happened: Magellan's char and chief investment officer is like the Aussie golden child of fund management. He's the JT to N'Sync...the Beyoncé to Destiny's Child...you get it. But now, he's taking a medical leave of absence.
What else: Investors didn't like this at all. And when news broke, Magellan shares sank 6.2%...which means they're down around 66% in the last 12 months.
💡Company news has the potential to seriously influence investor behaviour...especially when it's about somebody at the top. Because generally, a change in a top executive carries more downside risk than upside risk. Ya know, better the devil you know.
💡Some investors get really spooked that a newcomer could change the company's strategy for the worse.
💡Usually, when top executives leave, there's usually a succession plan worthy of the Royals to ease investors' concerns and keep the share price steady. In this case, the other co-founder has jumped in.
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