Hamish Douglass, co-founder of Australian investment giant Magellan Financial Group, has broken his four-year silence, detailing the cataclysmic events that led to his departure and a severe mental breakdown. The former chairman and chief investment officer publicly recounted the deeply personal and professional crises that engulfed him and the firm in late 2021 and early 2022. Magellan Financial Group is an Australian investment giant that manages funds for retail and institutional investors, primarily focusing on global equities.
Mr. Douglass revealed he separated from his wife, Alexandra, after coming out as gay to his children, a personal revelation coinciding with his mother’s death. Professionally, Magellan faced significant challenges: CEO Brett Cairns resigned, and British wealth giant St James’s Place pulled a substantial £10 billion mandate. Compounding this, damaging and false rumours circulated, alleging an affair and deeply impacting Mr. Douglass, who vehemently denied the claims. Short sellers intensified pressure as his flagship fund underperformed.
The relentless pressure, coupled with the fund’s poor performance and the firm’s market value halving, led Mr. Douglass to a complete mental breakdown, with thoughts of suicide. His ex-wife, Alexandra, intervened, leading to his stepping down from Magellan on medical grounds in February 2022. Diagnosed with extreme post-traumatic stress disorder, he spent almost three years recovering, crediting his wife, children, and friends for his survival. He acknowledged past investment missteps, including Magellan’s overexposure to Chinese tech.
Now in a happy relationship and still close to Alexandra, Mr. Douglass reflected on the consequences, including personally losing $1 billion due to the share price collapse. He conceded the firm was “wrong-footed” by market movements and discussed efforts to diversify Magellan. At 57, Mr. Douglass stated he is not seeking a comeback in managing other people’s money, preferring not to be part of “comeback stories” that often “don’t work out very well.”
