Embattled fund manager Magellan says it has sold its 11.6 per cent stake in Mexican fast food chain Guzman y Gomez to a unit of its partly owned investment bank Barrenjoey for a cash consideration of $140 million.

The sale is at a 36.3 per cent premium to the January 2021 entry price, the company said and, according to chair Hamish McLennan, is the latest step in the fund manager’s “strategy to focus on its core funds management business”.