Mega-rich money manager Hamish Douglass has taken medical leave after a horror two-month stretch beset with personal issues and a shocking performance by his investment business Magellan Financial.
The so-called “rock star stock picker” announced on Monday that he would be standing aside as Magellan’s figurehead after a hugely stressful period that included the public breakdown of his marriage and a terrible run that has wiped billions from his company.
Investors have punished the multibillion-dollar business Magellan over the past year following a poor investment performance, while admissions last year that Mr Douglass had separated from his wife Alexandra caused further ructions among shareholders.
The pressure was dialled up in December with the mystery exit of chief executive Brett Cairns and the loss of the firm’s biggest client, St James Place, while last week Mr Douglass pleaded with investors to ignore short-term downturns in stock markets but was met with a frosty response.
There is no time limit on Mr Douglass’ leave, with the Magellan board telling him to take the time he needs to focus on his health.
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 board wholeheartedly supports Hamish’s decision to prioritise his health and Magellan is committed to providing him the time and support he requires,” Mr McLennan said.
Monday’s news was a blow to the beleaguered ASX firm, which has already plunged in value and lost $23bn in funds over the past couple of months.
The company admitted in an accompanying trading update that total funds under management had fallen again from $95.5bn to $93.5bn between December and January, with people continuing to take their money elsewhere.
Magellan shares duly dropped another 11 per cent to a new six-year low of $16.14, having traded above $73 in early 2020.
The company’s value has fallen from $13.6bn to a little more than $3 billion in that time.
Mr Douglass’ personal fortune has also eroded in this time, as much of his wealth is tied to his 12.2 per cent stake in the company.
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