There’s been a fresh twist at under-fire funds manager Magellan Financial, with co-founder and former chairman Hamish Douglass quitting the board as his mxjmtzywedical leave continues.
The multi-millionaire Mr Douglass last month shocked the market when he announced he would be taking indefinite leave from the global funds business after a period of intense personal and professional pressure, including the breakdown of his marriage.
The company on Monday said their former chairman and once star stockpicker had now quit the board altogether due to his health.
According to the share registry, Mr Douglass retains a 12 per cent stake in the company.
Magellan has been badly bruised during the Covid-19 crisis as months of poor investment performances were compounded by the shock – and unexplained – departure of chief executive Brett Cairns in December.
This development followed news Mr Douglass had split from his wife Alexandra. They released a joint statement to the ASX to say they had no intention to sell down their stake in Magellan, but the company was seemingly in free fall as it entered 2022 after the loss of a major client and continued outflows.
In February it was announced the father of four would be taking indefinite medical leave.
Director and Rugby Australia chair Hamish McLennan was appointed chairman in his absence.
According to its latest update, Magellan’s funds under management since August have nearly halved to $69.1bn, while Magellan itself is worth about $7bn less than it was in October after a share price plunge of nearly 80 per cent.
Stepping in to manage the company’s flagging global funds business is Chris Mackay, who co-founded Magellan with Mr Douglass in 2006, while director and Rugby Australia chair Hamish McLennan will stand in as the company’s chairman.
The company is still searching for a permanent chief executive and on Monday said it would be continuing its search for a new independent director.
Magellan shares initially rose on Monday, hitting an almost three-week high of $16.07, before falling flat to $15.74 after an hour.
