Ryan Joyce, Deputy Portfolio Manager at Magellan Investment Partners, recently discussed the performance of their global opportunities fund, which has lagged its benchmark, the MSCI World Net Total Return Index, recently. Sydney-based Magellan manages approximately $39.9 billion in assets. Joyce noted that while the fund has outperformed the MSCI World since its inception and over the three years to February 28, recent performance has been affected by market dynamics surrounding artificial intelligence. Magellan Investment Partners is an Australian-based investment management firm that specialises in global equities. The firm provides investment solutions to retail, high net worth and institutional investors.
Joyce highlighted the exit from Lloyds, a major UK bank, due to valuation considerations and a focus on upgrading portfolio quality. He also mentioned Dollar General, a US-based small-box discount retailer, as a stock they own that may be unfamiliar to many investors. He said the company faced pressure due to wage inflation and customer income pressures. Joyce believes operational improvements under the returning chief executive will improve profitability. He also identified Adidas as meaningfully undervalued, citing market concerns that are already reflected in the share price.
Regarding Magellan’s merger with Barrenjoey, Joyce expressed excitement, noting the complementary nature of the combination and the opportunity for greater diversity. He also shared a piece of advice from former Magellan investment chief Gerald Stack, stating that “anybody can kill a good idea,” which has influenced his approach to balancing potential risks and rewards.
For investment insights, Joyce recommends the BG2 Pod, hosted by Bill Gurley and Brad Gerstner, for its perspective on developments and debates in Silicon Valley and technology. He also recommends Jeff Pelletier’s trail running videos on YouTube for entertainment.
