Investors learned today that Norwegian investment manager DNB Global Indeks sold out of its position in Magellan Financial Group (ASX:MFG) in March, boosting its holdings in Tesla, plus several other tech giants.
Eirik Torboern Hauge who manages the fund closed out four positions which included 11,578 shares of Magellan valued at $2.7 million (1.36 million kroner), and increased 247 holdings. The handful includes Tesla by 2.4 per cent, Apple by 1.1 per cent, Amazon.com by 1.9 per cent, and Berkshire Hathaway Class B by 1.1 per cent.
Following Magellan March quarter funds under management (FUM) update, Macquarie notes the rate of outflows has slowed in recent weeks and cited that outflows are expected well into financial year 2023 on soft investment performance. The broker retained its underperform rating however, hiked its target price to $13.25 from $12.40.
Ord Minnett has a similar view, raising its target price from $13.40 from $13, retaining its lighten rating. The broker said that they are cautious in calling a trend on a very short snapshot of performance from the 25 February to 11 March.
UBS commented on the FUM update, citing growth of 1.3 per cent, providing relief from recent sharp declines. The broker points out that the net outflow for the quarter was in-line with market expectations and points to a plate of metrics indicating that fundamentals remain poor. However, in the absence of a sustained turnaround, the broker retained its sell rating but trimmed its price target to $13 from $13.50.
Today, Magellan Financial Group (ASX:MFG) is the second worst performer on the ASX 200, trading 4.1 per cent lower to $14.60.