Sell Platinum and Buy Magellan

Magellan is up the last 5 days straight and hit its highest level in 1 ½ years. About 8 months ago I pushed a pairs trade – sell Platinum and Buy Magellan. Despite the massive move (especially) in the last 4 months I’d keep in on still. I can’t see any value in Platinum, while Magellan are back after a period of inertia, so I would stay with this trade.

Magellan’s May 2017 Flows were +$142m inflows (+3.4% of FUM annualised). 2H17 to date, net flows at +3.6% of opening FUM are exceeding our forecast, but remain below our +>5% ‘benchmark’. Net inflow mix: +$35m Global Equities Retail; +$30m Infrastructure Retail; and +$77m Institutional. Magellan is on track for ~$41m in Performance fees in 1H17.

Source IRESS / Coppo Report 


What do the shorts think - are they shorting MFG or PTM? Magellan - NO they don't dare - it's steady at 1.4%. However, Platinum shorts are rising from 1.7% as of 2 months ago … to 2.74% now. 


The Coppo Report

This article is an excerpt from The Coppo Report contributed to Livewire by Richard Coppleson, Director - Institutional Sales and Trading, Bell Potter. you can find out more here.

Not an existing Livewire subscriber?

Register here to get access to the Livewire website and to start receiving the Trending on Livewire daily note.



Richard Coppleson
Director of Institutional Sales and Trading
Bell Potter

Richard authors “The Coppo Report”, a highly regarded market newsletter. He has over 30 years’ experience in financial markets, beginning his career at Ord Minnett where he worked for 15 years, before moving to Goldman Sachs.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.