Guess which ASX 200 company co-founder just offloaded $112 million in shares

We've just seen a co-founder sell out of most of his shares in a major ASX 200 company.

| More on:
Sell buy and hold on a digital screen with a man pointing at the sell square.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It's always big news when a director, CEO or insider of an ASX 200 company sells out of a significant portion of their own shares. But when a co-founder unloads $122 million worth of shares? Well, that's certainly worth talking about.

That's the situation confronting Magellan Financial Group Ltd (ASX: MFG) investors right now.

According to ASX filings, Magellan co-founder Chris Mackay has just sold 12 million ordinary Magellan shares for a sale price of $9.40 per share. That translates into a sale worth $112.8 million, which occurred on 23 August.

The shares were held by Mackay's company, Magellan Equities Pty Limited, in which both he and members of the Mackay family have an interest. This parcel represents the vast majority of Mackay's interest in Magellan, the ASX 200 company he co-founded. He owned around 15.3 million shares before this sale, so presumably, he still retains approximately 3.3 million shares.

Who is Chris Mackay, and why is he selling out of his ASX 200 company?

Mackay, along with former Magellan boss Hamish Douglass, founded Magellan back in 2006. He has not had an active role in the ASX 200 company for many years now. That's aside from a brief stint last year when Mackay stepped in as chief investment officer following the resignation of Douglass.

Since 2012, Mackay has concentrated on his rule as chief investment officer at MFF Capital Ltd (ASX: MFF), the old Magellan Flagship Fund that is now run at arm's length as a separate listed investment company (LIC).

What's interesting about this sale from Mackay is its timing. The Magellan share price has been sliding for years now.

Created with Highcharts 11.4.3Magellan Financial Group PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

Magellan stock last peaked back in early 2020, topping out at over $65 a share. A series of issues since then, including the messy departure of Douglass, weak investment performance, and a massive loss of funds under management (FUM), have caused massive damage to the Magellan share price.

As has major sales from Douglass' own portfolio.

Today, Magellan shares remain down by 28.5% over the past 12 months and down more than 85% from its all-time highs.

But the Magellan share price has also bounced meaningfully in recent months. Since hitting a new multi-year low of $7.52 earlier this year, Magellan has rallied considerably, up more than 23% from that low. So perhaps this rally is why Mackay has just decided to sell out of this significant stake. He has given investors no explanation for this massive sale.

This news is probably not what Magellan's investors wanted to hear today.

Motley Fool contributor Sebastian Bowen has positions in Mff Capital Investments. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Financial Shares

young woman reviewing financial reports at desk with multiple computer screens
Opinions

Brokers' verdict on 4 popular ASX 200 financial stocks

Financials outperformed every other sector in FY25. What should you do now with these 4 stocks?

Read more »

a man in a business suit sits at his laptop computer at his desk and smiles broadly in an office setting, giving an air of optimism and confidence.
Dividend Investing

Up 25% since April, are Macquarie shares still a good buy for passive income?

A leading expert gives his verdict on Macquarie shares and the passive income on offer.

Read more »

A green-caped superhero reveals their identity with a big dollar sign on their chest.
Financial Shares

Own Soul Patts shares? Here's its latest investment for diversification

The company has added further energy exposure to its portfolio.

Read more »

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Financial Shares

2 rising ASX financial shares with 'meaningful upside' still left: fundie

Financials outperformed every other sector in FY25, but there are still buying opportunities left, say these experts.

Read more »

Frustrated and shocked business woman reading bad news online from phone.
Financial Shares

Macquarie shares sink 5% on Q1 update

The investment bank is having a tough start to the year.

Read more »

A man holds his baby on his lap at the dining room table while he looks at his laptop screen earnestly.
Financial Shares

After its result, does Macquarie rate AMP shares a buy, hold or sell?

The financial services company released a strong second-quarter update on Monday.

Read more »

A blockchain investor sits at his desk with a laptop computer open and a phone checking information from a booklet in a home office setting.
Broker Notes

Are non-bank lenders a lucrative alternative to the big 4 banks?

The big 4 banks are widely perceived as being fully valued or overvalued.

Read more »

Red sell button on an Apple keyboard.
Financial Shares

ASX 200 financials was the best sector of FY25. But it's time to sell these 2 stocks, say experts

The ASX 200 financials sector gave investors a near-30% total return in the 2025 financial year.

Read more »