“The jury is out [on Barrenjoey],” Dr Pohl said. “We will watch what he does – if there is anything outside of Barrenjoey that is abnormal to a fund manager. We are still holding, but there are a couple of little concerns that we have that we are watching.”

Dr Pohl added he is “always concerned” when an executive’s departure is unexpected. “However, less so when there is a succession plan in place or in the case of a fund manager when it is not the chief investment officer but someone who really could be seen as a chief operating officer.”

Argo Investments senior investment officer Andy Forster, who does not hold stock in Magellan but watches the company closely, said investors were likely spooked by longer-term trends that could undermine Magellan’s future earnings.

Mr Forster said he did not wish to downplay Mr Cairns’ contribution to the firm, but his departure would not significantly change the group’s fundamentals as it was Mr Douglass who called the shots. “If Hamish were to leave, that would be a far bigger concern to the business,” he said. “Hamish is the main game. He’s considered a bit of a doyen of the market.”

Mr Forster said investors would be increasingly concerned by Magellan’s outlook which could be marred by ongoing underperformance, flatlining funds under management growth and greater competition from lower cost investment managers. “Generally they [Magellan] have been a relatively expensive manager. People are questioning whether that’s sustainable.”

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Atlas Funds Management founder Hugh Dive, who also does not own shares in Magellan, said investors deserve more information about Mr Cairns’ resignation. “Whenever someone who’s been there for a very long time leaves, it’s always a bit of a concern. Particularly as we’ve seen the share price has been under extreme pressure.”

Mr Dive said he was unconvinced by the explanation provided, as typically vague responses indicate other problems within senior management.

“Obviously Cairns has been there for a very long time, he’s been there since day dot. And he’s been very heavily involved in the business.

“We’ve all been in the market a long time and those ‘personal reasons’ or ‘more time among family’ [statements] can often be very different to what they’ve said ... It’s not like the company is powering ahead.”

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