I find it a little hard to believe. Magellan still exists, and, as I noted in other thread, nothing particularly bad happened when Lynch left.
The glory years faded out in 1983. As I noted in another thread, if we chart Magellan (FMAGX, blue) together with the Vanguard 500 Index Fund (VFINX, red) starting in 1983, they are pretty close, leapfrogging a bit but neither one being hugely superior. Look at this chart, and, based just on what you can see of Magellan's performance, can you tell when Lynch handed over the reins to his successor?
![Image]()
The whole chart, from inception of Magellan:
Source
![Image]()
I don't see where Magellan investors have anything to complain about, before OR after Lynch.
I can't account for what investors do, nor do I have any analysis of flows, but I just don't see where on that chart Magellan investors would be energized or spooked when 500 Index investors wouldn't have done the same thing. It's well known that there's a gap between "fund returns" (what you'd get if you buy and held) and "investor returns" (what real investors, trading in and out, actually get). But I don't see why it would be any worse with Magellan than with 500 Index.
I'm prepared to see data but I'm not convinced that it's a Magellan problem.
The glory years faded out in 1983. As I noted in another thread, if we chart Magellan (FMAGX, blue) together with the Vanguard 500 Index Fund (VFINX, red) starting in 1983, they are pretty close, leapfrogging a bit but neither one being hugely superior. Look at this chart, and, based just on what you can see of Magellan's performance, can you tell when Lynch handed over the reins to his successor?
The whole chart, from inception of Magellan:
Source
I don't see where Magellan investors have anything to complain about, before OR after Lynch.
I can't account for what investors do, nor do I have any analysis of flows, but I just don't see where on that chart Magellan investors would be energized or spooked when 500 Index investors wouldn't have done the same thing. It's well known that there's a gap between "fund returns" (what you'd get if you buy and held) and "investor returns" (what real investors, trading in and out, actually get). But I don't see why it would be any worse with Magellan than with 500 Index.
I'm prepared to see data but I'm not convinced that it's a Magellan problem.
Statistics: Posted by nisiprius — Mon Jan 13, 2025 5:52 pm — Replies 8 — Views 551