Activist investor Sandon Capital says Magellan should abandon its plan to rebuild funds under management to $100 billion, and instead focus on returning at least $300 million to shareholders as part of a broader push to restore investor faith.

Sandon argues that Magellan, which has suffered a share price plunge of almost 90 per cent to $8.61 since the stock peaked in February 2020, could be worth more than $15 a share, even if FUM grows only marginally from the $41.4 billion reported earlier this month.