Catalano hails ‘$600m man’ after Magellan yields to Bolton
Embattled fund manager Magellan says it intends to convert its $2.65 billion closed end fund, the Magellan Global Fund, into an open-ended exchange-traded fund following pressure from activist investor Nick Bolton.
Mr Bolton’s investment company, Keybridge Capital, has pushed Magellan to act to narrow the double-digit discount to net asset value of the fund and Magellan’s move has been hailed as a victory for the divisive activist.
Activist fund manager Nicholas Bolton has been dubbed the “$600 million man”. James Davies
Keybridge non-executive director Antony Catalano branded Mr Bolton the $600 million man, a reference to the gap in the market value of the fund and its net asset value (NAV) when Mr Bolton ramped up his campaign.
“He identified a gaping hole in shareholder value and has driven the strategy, which has forced Magellan to take steps to close a $600 million shortfall to NAV – possibly the largest NAV closure in Australian corporate history,” Mr Catalano told The Australian Financial Review.
Magellan’s move came as Keybridge wrote to the fund’s responsible entity to inform them it had gathered the required100 signatures to call a unitholder meeting.
Mr Bolton had snapped up units of the listed fund, which trades under the MFG ticker, in addition to millions of options tied to the MGF.
He has called for Magellan to wind up the fund and return cash to investors.
Such a move would allow investors to realise the full value of their holdings, but also create a windfall for option holders that can have the right to buy into the fund at a 7.5 per cent discount to net asset value.
However, Magellan’s statement said it planned to hold a unitholder meeting “in the first half of calendar year 2024” suggesting it is
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