The spectacular loss of wealth suffered by Magellan Financial Group co-founder Hamish Douglass on his sale of a 7.1 per cent stake in the under siege fund manager for a fifth of its value just 18 months ago is also being felt by its employees.
Mr Douglass dumped the bulk of his stake to net $118 million, but share loans to staff are about $20 million underwater following the share price plunge, leaving them stranded at the company unless they have independent means to defray the losses.
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Aaron Weinman is a correspondent at The Australian Financial Review who covers investment banks, private equity firms and the broader capital markets. Connect with Aaron on Twitter. Email Aaron at aaron.weinman@afr.com
Jemima Whyte writes on business, specialising in companies, capital markets and innovation. Jemima has reported on business for The Australian Financial Review for more than 13 years. Email Jemima at jemima.whyte@afr.com
Jonathan Shapiro writes about banking and finance, specialising in hedge funds, corporate debt, private equity and investment banking. He is based in Sydney. Connect with Jonathan on Twitter. Email Jonathan at jonathan.shapiro@afr.com
